ISLAMABAD: Chairman Federal Board of Revenue Dr Mohammad Ashfaq said it is a financial crime to collect the tax by retailers from customers but not to deposit in the national kitty.
He said the FBR would close down those retailers who were collecting Sales Tax from the customers but not depositing it in the national kitty.
Talking to the media after the launching of a much-awaited first computerized draw of Point of Sale (POS) Prizes of Rs 53 million for 1,007 customers here at the Board’s Headquarters on Saturday night, the FBR chairman said the FBR obtained powers through the Finance Supplementary Act 2022 for taking action against retailers involved in non reporting of their actual sale as the FBR found that out of Rs 20 to Rs 22 trillion sales, the non-reporting sale was estimated at Rs 16 to Rs 17 trillion.
The FBR, he said, possessed visibility of just Rs 4 to 5 trillion whereas the country’s banking sector had visibility of Rs 5 to 5.5 trillion, adding the evasion of retailers in Sales Tax was also resulting lower collection on account of Income Tax.
Dr Ashfaque Ahmed said the FBR so far integrated 3,000 big tier-1 retailers with POS system, adding the government is considering to increase the prize money of the first bumper prize for the next lucky draw.
The FBR held the lucky draw and issued the list of lucky 1,007 winners of first computerised draw of POS prize who were given prizes worth Rs53 million. The FBR will deduct withholding tax at the rate of 40 percent from winners who are non-filers and 20 percent withholding tax who are filers of income tax returns.
The prize scheme was introduced through the Finance Act-2021-22, which was followed by issuance of rules for the prize scheme on August 9. 2021 by the FBR.
The denomination of prizes has been set as Rs10,00,000 (1st Prize), two prizes of Rs500,000, four prizes of Rs250,000, and one thousand prizes of Rs50,000 each. Thus, a total prize amount of Rs53 million will be distributed among the lucky 1,007 winners, every month.
The bumper prize of Rs1 million was announced for Tanver Ahmed having documented receipt of Alkaram Studios. The FBR also announced the names of the lucky winners of two prizes of Rs500,000 and four prizes of Rs250,000. It also aims to ensure that tax collected from customers at the point of sale is deposited in state exchequer. This will not only force the Tier-1 retailers to expedite the integration of their retail outlets with the FBR POS System but will also encourage the customers to prefer shopping from the POS-integrated retail outlets.
