ISLAMABAD: Under efficacious tax policies being designed by the Federal Board of Revenue (FBR), people who have taxable income will not be able to avoid taxes in the future.
This was a point highlighted in the interview with FBR Inland Revenue-Policy (IR) Member Rehmatullah Khan Wazir with Customs Today. The board will use its powers under the law, he said, adding that the FBR was not autonomous completely, as it was working by having limited powers.
By the end of 2018, the accord with Organisation for Economic Corporation and Development (OECD) will be implemented, while the parliament of Switzerland will also endorse the agreement by March 2017 giving access to Swiss accounts operated by Pakistanis, he explained.
After OECD accord, the FBR will not have to give names of Pakistanis to Switzerland and other member states in order to get information about their bank accounts, as data will be exchanged electronically among member countries, he said.
“Therefore, I ask all Pakistanis who have taxable income to correct their tax details, as the board has enough data in its database to catch the tax evaders,” he revealed, adding that the strength of return filers was less than the actual taxpayers.
Talking about an hot issue of Bhamas leaks, Wazir said that the directions of Finance Minister Ishaq Dar will be followed in the issue, adding that those who have offshore companies will be interrogated about banking channels for transactions abroad, sources of income and time period of investment.
Finance Minister Ishaq Dar and Special Assistant to PM on Revenue Haroon Khan Tareen made best efforts to promote tax culture in Pakistan, besides bridging gap between business community and the FBR, he said.
By adopting balanced and effective policy, tax systems have been made enough strengthen in developed countries, as there is no concept of not paying taxes, the member said, adding that the businessmen in Pakistan took the taxes as burden, but now it is the time to serve the countries by paying liabilities.
Exemptions on the import of raw material under Section 148 given to the industrialists have been made conditional with their audit, he informed, adding that exemptions will be withdrawn from non-followers, besides recovering taxes as per law.
The board will not attach the bank accounts of taxpayers who have paid 25 percent of the arrears and those whose cases were pending with the IR Appeals commissioner, Wazir said.
A relexation in taxes on the export of IT services and software has been offered until June 30, 2017 with a condition of bringing 80 percent of income into Pakistan through normal banking channels in shape of foreign exchange, he said.
The member said that laws have been introduced for leasing companies, scheduled banks, investor banks, monetary firms and Madaraba under which three percent income tax according to the value of vehicle, which will be leased by the said organisations, will be received from non-filers. The aim of the laws was to broaden tax net and bring non-filers into tax net, he further said.
The FBR will receive four percent income tax and one percent advance tax from non-filers who pay over Rs 200,000 premium on general and life insurance.
Similarly, the determination of tax rate on fair market value of property was part of the policy of broadening tax net, he said, adding that the person from which tax will be collected on sale and purchase of the property will have to file returns next year with the details of source of income.
