FAISALABAD: Member Federal Board of Revenue (FBR) Muhammad Raza Baqir on Monday said that the FBR would broaden tax base by bringing 300,000 non-tax payers into the tax net.
Addressing a meeting of various textile stakeholders at Faisalabad Chamber of Commerce and Industry (FCCI) here, he said that notices to the potential tax payers would be issued in next couple of weeks.
He said that Pakistan was among a few countries with less than 9 per cent tax-to-GDP ratio. At the moment, there are only 13,000 tax payers whereas the FBR had compiled data of six million persons who had acquired vehicles and made frequent foreign traveling during last few years.
He said that the FBR had no resources to collect taxes from all the persons, so initially notices would be issued to only 300,000 individuals. 'Shame and Name' scheme will also be introduced to pinpoint the non-tax payers, he added.
Regarding SRO 98 and SRO 154, he said that most of the reservations of sizing, weaving and processing sectors have already been resolved and an amended SRO is expected to be issued within couple of days.
He identified refund as a major issue and said that all modalities had been finalized to start online refund system from June this year.
He said that the FBR was ready to pay the refund 'there and then' on the certification of Chamber of Commerce that a person demanding refund was genuine. However, the Chamber should also accept the responsibility that in case of any fraud, it would be responsible.
He assured that all the stakeholders would be taken into confidence on such crucial issues in future.
He clarified that 2% withholding Tax will be imposed only on the conversion charges in textiles but not on the total value for sizing, weaving and processing. He also assured that exports would totally remain zero-rated and would not be subjected to any tax.
Dispelling the impression that the FBR officials involved in corrupt practices always remain unpunished, he said that many grade 21 officers were dismissed as the whole society was almost indulged in illegal practices.
He said that computerization had also helped in identifying the potential tax payers in addition to facilitating the concerned officers to take action against the corrupt officials.
Earlier, in his welcome address, FCCI President Mian Zahid Aslam said that businessmen were struggling for their economic survival in these days of severe energy crisis where gas was available only for two days a week. In the last days of outgoing government, frequent SROs were issued which were not only difficult but impossible for implementation.
The SROs 98 and 154 have been issued without consultation to any of the stakeholders and even Public Accounts Committee of National Assembly discouraged the SRO culture which is the sole discretion of Parliament, he added.
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