LAHORE: The government should facilitate traders to increase taxation. If traders will earn more, they will pay more taxes. To strengthen national economy, the government should also facilitate the Federal Board of Revenue (FBR) with more staff and all other facilities required for the tax collection.
This was stated by Rehan Safder, Additional Commissioner, Large Taxpayers Unit (LTU), Zone-IV, Lahore, while giving an interview to Customs Today.
Talking about the jurisdiction, Rehan said there are several types of cases which fall under his department’s jurisdiction. He said he collects revenue from steel sector’s 12 units. He also collects taxes from two sugar mills, educational institutions, pipe manufacturing industry and hospitals.
Additional Commissioner said Zone-IV collects more taxes from the steel industry from where he also collects monthly Sales Tax. He collects taxes from the big steel units like Mughal Steel, New Shalimar, Tayyab Brothers, Sufi Steel, Punjab Con-cast Steel Limited, T.A Corporation and the other unnamed one.
Zone-IV has collected one billion in December from which Rs202million is from Sales Tax. Steel sector contributes 50 to 60 percent to the zone, he said.
Rehan said he performs both functions of audit and enforcement of taxpayers. Talking about audit process, he added that there are two basic ways of selection of cases for audit; one is selection by the Federal Board of Revenue (FBR) and the second one is selection by the zonal commissioner. Under the Section 122 (5), the additional commissioner and officer Inland Revenue (IR) can select cases for audit.
“During the audit procedure, if any discrepancy is found, the officer concerned checks taxpayers’ record and orders payment of their complete tax liability”, he said.
Talking about the enforcement, Rehan said the enforcement wing can also create demand and then collect taxes. Enforcement wing also meets the demand created by the audit wing. Additional commissioner said the enforcement of withholding statements and monitoring of withholding also match the WHT statements with tax returns. If any taxpayer produces exemption certificate, department withholds tax. Mostly, the exemption certificates are issued on supply and imports.
Talking about the problems, Rehan said the unavailability of taxpayers’ record on the Federal Board of Revenue (FBR) and the litigation is a big problem for tax collection. He said the business friendly environment can enhance tax-net and if growth will develop then national economy will strengthen.
Rehan Safder said the Federal Board of Revenue arranges video conferences and training sessions at the Directorate of Training (BOT) and also arranges special lectures for the training and motivation of the officers. All the senior and junior officers learn more during the sessions and apply the new learning tools of outstanding to tax collection.
He said the most dedicated, professional, competent and hardworking officers have been posted at the LTU, adding the LTU will not only meet the target but also surpass it to strengthen the national economy.
