Provinces can impose, collect agri tax: FBR

N H ZUBERI

KARACHI: Chairman, Federal Board of Revenue (FBR), Salman Siddique has said that provincial governments could impose and collect agriculture tax, as taxing agriculture income fall under provinces' preview after the 18th constitutional amendment.

Responding to a demand for taxing agriculture income at two taxpayers interactive seminars held separately at Karachi Chamber of Commerce and Industry (KCCI) and Korangi Association of Trade and Industry (KATI), Siddique said that as per 18th constitutional amendment several sectors had been devolved to the provinces and now the provincial governments could impose and collect taxes from these sectors.

He said that the federal government could imposed taxes only in those sectors, which come under it preview. Imposing tax on agriculture income comes under provinces' jurisdiction, he added.

He said that the main issue was broadening of the tax base not as to who would collect the tax. Broadening of tax base should start from provinces, he added. He urged business community to use their influence to persuade provincial governments to increase their revenue generations.

He said that where there was a taxable income there should be a tax and there should be no exemption.

He dismissed the impression that the board had unilaterally started asking for telephone bills, gas bills, CNICs and NADRA data, saying that the chambers had proposed many times to take these measures to explore and broaden tax net.

He said that there were huge numbers of people having more than one bank accounts, luxurious houses and cars and frequently traveled abroad but were contributing nothing to the national exchequer in the form of tax.

He said that on the basis of above mentioned information about 2.3 million new taxpayers had been detected and notices served on 1,20,000 potential taxpayers. Regarding the issue of CNIC for sale of goods to non-registered persons and declaration of personal expenditures, he invited business community for a meeting on Friday at FPCCI to sort out the issue.

Referring to the flood surcharge, he said it was imposed on humanitarian grounds to help the flood effected people.

The FBR chief dispelled the impression that IMF had pressurized the board to implement the value-added tax (VAT) and added that the government itself suggested VAT.

Salman Siddique further said that General Sales Tax (GST) scheme was imposed in a very effective manner but it was distorted with the passage of time through various amendments.

He said at present Pakistan was out of IMF programme, saying that the IMF was going to review Pakistan economy soon.

Salman Siddique advised business community to submit their budget proposals for the year 2012-13 on or before March 2012 as budget would be presented in the National Assembly in May 2012 insisted of June this year.