ISLAMABAD: The Federal Board of Revenue (FBR) has decided to develop innovative strategy to increase the tax base.
Sources told Customs Today that FBR would focus on big & flourishing businesses to bring into the tax net, including private hospitals, diagnostics, labs, pharmacies, eateries & food outlets, bakers, wedding halls, entertainment sector, event management concerns, professionals linked with showbiz, sports, drama, film, music and theatre, amusement parks & facilities, private educational institutions, especially joint ventures with international universities.
Sources told the real estate sector witnesses countless transactions each year, (mostly falling outside formal tax regime) is infested with concealment, gross understatement and duplicate documentation.
The FBR intends to collect investors’ data, identify unregistered persons and ensure that due tax is paid by them. Sources mentioned that Pakistan has also signed Multilateral Competent Authority Agreement (MCAA) and FBR has successfully exchanged information with 39 jurisdictions in September, 2018.
The number of exchange partners is likely to increase in 2019 and onwards. Any information exchanged with any partner jurisdiction under any of the above frameworks can be used for the purposes of broadening of the tax base.
