ISLAMABAD: The federal government has decided to bring remittances into the tax net in the upcoming budget for the fiscal year 2015-16.
During the meeting of Senate Standing Committee on Finance and Revenue, presided over by PPP’s Salim Mandviwala, Secretary Finance Dr Waqar Masood Khan lauded the senators for passing Rs145 billion Gas Infrastructure Development Cess (GIDC), which was difficult to be imposed due to some legal challenges.
Federal Board of Revenue (FBR) Chairman Tariq Bajwa told the panel that the lower oil prices had taken a heavy toll on revenue collection and the FBR faced a loss of Rs21 billion even in last month.
Replying a question, he said the tax evaders would be subjected to higher withholding tax in the coming budget and the computerised national identity cards would stand converted into national tax numbers from July 1, 2015 by replacing NTNs.
The FBR chief said it was also under consideration to put some restrictions on foreign remittances to regulate such transactions. He said under section 11 of the Income Tax Law, banks are required to provide a certificate of encashment of remittances, but tax officials were not authorised to ask questions, which was resulting into a channel of tax theft.
He further said the government will also reduce customs tariff slabs and rates in the budget. The customs tariff slabs were being reduced from existing six slabs to three and the rates would also be reduced, he added.
Finance Minister Ishaq Dar told the committee that the meeting of the National Economic Council will be held on June 1 to approve Public Sector Development Programme (PSDP) for next year and said the government would get the budget passed from the parliament by June 22 or 23.
