LAHORE: Assistant Commissioner Inland Revenue Zone VI, Corporate Regional Tax Officer (CRTO) Muhammad Ali Taj, has said that it is high time to say no to International Monetary Fund (IMF); more tax compliance means no more loans, choice is ours.
During an exclusive interview to Customs Today, Muhammad Ali Taj said Power Sector (IPPs, RPPs, GENCOs, Distribution and Transmission Companies), advertising agencies, electronic & print media, education sector fall in his jurisdiction where from he collects taxes.
Talking about the working procedure for tax collection, Taj said he works for enforcement of statutory statements under Section 165, Annual Income Tax Return under Section 114 of the Income Tax Ordinance-2001 and Sales Tax Returns under Section 26 of the Sales Tax Act-1990, monitoring of deduction, collection and payment of tax at source by withholding agents on daily and monthly basis.
He also conducts Desk Audit as well as Field Audit of Statements of Tax Deduction under Section 165 and Annual Income Tax Return under Section 114 of the Income Tax Ordinance-2001 and Sales Tax Return under Section 26 of the Sales Tax Act-1990.
Muhammad added that he conducts Audit viz a viz withholding taxes in terms of Sections 161 and 122(1) of the Income Tax Ordinance-2001 and Section 11 of the Sales Tax Act-1990.
He further said he also deals with charging of default surcharge for non-filing of statutory statements and default of withholding/collection respectively. Recovery of current demand created as a result of orders passed under Sections 161, 122(1) and 182 of the Income Tax Ordinance-2001.
Talking about the collections of last months of tax year, he further said through monitoring and collection of tax under Section 235 of the Income Tax Ordinance, he has collected Rs1735million from November 2016 to February 2017. About Rs737 million has been collected from monitoring and collection of tax under Section 236 I of the Income Tax Ordinance in the same period of time, he said.
The collection of current demand is Rs2.7million, collection of arrears demand is Rs124 million, collection of sales tax through monitoring and demand (November 2016 to February 2017) is Rs1694million and collection through enforcement of annual income tax return is Rs. 7 Million.
Talking about the role and importance of Inland Revenue Service (IRS) in Pakistan, Muhammad Ali Taj said IRS is the backbone of Pakistan because economy is the major issue in Pakistan and it can only be improved if taxation system is properly followed and admired by the citizens. The IRS plays an important role by not only educating people in taxation and the benefits of paying tax but also implementing the taxation laws and regulations in strict manner so that tax base is broadened and economy is documented.
Answering another question regarding flaws in Pakistan Taxation System, he said there are no flaws in taxation system of Pakistan but since our economy is not documented fully, so there is still room for more insertion of legislative and regulatory control in taxation. Tax education is the need of hour. We have to realize the importance of taxation and the benefits we can get if taxation system is properly followed by people, he stressed. It can only be possible if we educate people more and more about tax, he remarked.
Replying to a question that how can Pakistan economy improve, he opined that Pakistan economy can only be improved if we start realizing the importance of taxation and our individual responsibility in terms of payment of due tax. The legislation needs to introduce more acceptable tax rates. The undocumented sectors should be brought in the tax system.
Talking about the suggestion for betterment of economy, Muhammad Ali Taj put six points; one is Tax as a subject may be introduced in syllabus of academics; second is lower corporate tax rates may be introduced; third is research and development in different sectors of economy should be conducted; fourth is CPEC is an opportunity that should be availed; fifth is natural resources. Saindak Copper, Riko-Dik gold, Thar coal, natural gas, gemstones, marble need to be exploited to their full potential. And the last one is about tourism potential: Pakistan houses 50 out of 100 highest mountains in the world. Pakistan is also a hub of three of the largest mountain ranges in the world. Apart from mountains, Pakistan is the world’s best destination for spicy food. And of course, Pakistan is also a land of a 7000 year-old civilization of Mehrgarh. Of course there are Moinjo Daro and Harappa as well.
