Says Board is targeting non-filers, broadening of tax net is main objective
LAHORE: A huge amount of more than Rs300 billion of Federal Board of Revenue (FBR) is stuck-up in appeals that is also a tax demand, while less than Rs100 billion is the actual number of refunds which the Board has to reimburse. Federal budget 2017-18 will be people-friendly, in which no new taxes will be levied.
These views were expressed by soft spoken Federal Board of Revenue Chairman Dr Muhammad Irshad in an exclusive interview with Customs Today.
Irshad said that the Board is targeting non-filers in order to make them filers besides broadening of tax net has become the Board’s main objective. He said that due to the recent surge in imports, current account deficit has widened and there is an urgent need to increase local productivity, enhance exports and the shift in the strategy would help reduce current account deficit.
In reply to a question, the FBR chairman said that the teams of chief commissioners and chief collectors are free to raid wherever they identify large scale tax evasion; however, FBR officials have been strictly instructed to follow the due procedure. “We have, however, brought about a major change in our strategy. The parties in question would be informed about the discrepancies and invited to settle the difference or explain.”
“In case they don’t take our intimation seriously, then we will have no other option but to raid to collect the tax liability due to the party evading taxes,” the chairman explained.
To a query the chairman said that over Rs 300 billion, which is also a tax demand, is pending to various business groups due to the reason that they have opted for appeals and stay orders against their claims of refunds and rebate, “we have, actually, to reimburse to them, are less than Rs100 billion.”
The Board would be in quite a good position to reimburse the refunds and rebates if these stuck up tax liability Rs 300 billion is paid, the chairman said, adding, “I have urged the businessmen to come settle such disputes on the table instead of wasting money on uncalled for litigations.”
“No country can be run sans tax revenues and in this regard I also took on board the tax lawyers and petitioners,” he stated. He, however, admitted that there is also a considerable need to improve working of the tax collectors of both sides including Inland Revenue (IR) and Customs.
“The system has deteriorated to a significant level due to absence of mentoring, training and on the job grooming of the officers. However, I have been lucky to reconstruct IR to a maximum level.”
Now, the chief collectors and chief commissioners would be responsible for the grooming, training and mentoring and if their officials make mistakes, chiefs would be responsible. The very reforms have been made a part of the law in order to make the system result oriented, he said, adding, “We have decided to revamp the whole system.”
Talking about the upcoming federal budget 2017-18, Dr Muhammad Irshad said that on government levels, efforts are being made to announce a people-friendly, in which no new taxes would be levied instead strengthens implementation of the already imposed duty and taxes.
