ISLAMABAD: Federal Board of Revenue (FBR) is set to meet target of 1 million filers of tax returns while efforts are afoot to take the figure to 1.8 million within a year.
This was stated by Inland Revenue Policy Member Rehmatullah Wazir, while briefing officers of National Defence University (NDU) during their visit to FBR. Customs Member Nasir Masroor Ahmed also spoke on the occasion and gave the visiting officers an overview of the roles and responsibilities of Pakistan Customs Service in enhanced revenue mobilisation, trade facilitation and effective border management.
Rehmatullah Wazir said that FBR has written to all secretaries in the federal government, provincial governments and heads of semi-government and autonomous bodies as well as to those in the private sector, to ensure that their employees file their annual income tax returns this year. “We believe that this measure can help us get around 800,000 new filers,” he said.
Wazir said FBR is striving to create distinction between filers and non-filers by raising the cost of doing business for non-filers, adding that the imposition of bank withholding tax was a step in this direction. Similarly, over Rs 240 billion worth of subsidies and tax exemptions have been done away with by the present government in order to expand the tax base, to mobilise greater revenues and bring about uniformity in the tax environment, he added.
The IRP Member said FBR was exploring new perspectives such as creation and maintenance of central data bank, simplification of tax procedures, increased reliance on direct taxes within the tax-mix, minimum tax exemptions and withholding tax, robust audit and more transparency to promote a culture of tax compliance.
Customs Member Nasir Masroor Ahmed said the Customs was contributing significantly to overall tax revenue. Last year alone, nearly Rs 1 trillion in customs and sales tax was collected. He said Pakistan Customs is facing new challenges in the wake of IPRs enforcement, exponential rise in international trade, more sophisticated and demanding clients, heightened security concerns, proliferation of regional trade agreements and compliance to international conventions and these challenges were being met through end-to-end electronic solutions, efficient and effective implementation of trade agreements, withdrawal of exemptions and curbing border smuggling.
Later, an interactive Q&A session followed during which visiting officers asked FBR management keen questions on dynamics of fiscal policy and taxation. Commemorative shields were exchanged on the occasion.
