The Central Board of Revenue (CBR) has decided to issue notices to the non-filers of income tax returns for the tax year 2003, sources told Business Recorder here on Thursday.
The issue came to the limelight during Regional Commissioners of Income Tax Conference held here on Thursday, which started at 10:00 am and continued till late night. Chairman CBR, Muhammad Abdullah Yusuf presided over the said meeting.
Sources said that it has been decided to issue notices to the persons who have not filed returns to expand the tax base, increase revenue and number of taxpayers on the direct taxes side.
It was agreed upon in the meeting that the commissioners have the authority to issue notices to those persons who were filing their returns regularly, but have delayed their filing of return in 'tax year 2003'. Legally there is no bar on issuance of notices wherever necessary under the income tax law.
On the issue of refund, it was decided that pending income tax refund should be paid on top priority basis and only those cases should be withheld where verification is necessary, sources said.
It was noted that large portion of refund has already been paid to the claimants, while remaining amount would be paid in due course.
To encourage voluntary compliance, it was decided that the people should be encouraged to voluntarily pay taxes through facilitation measures.
The conference decided that the income tax department will be revamped and the entire work will be conducted through 12 Regional Tax Offices and 3 Large Taxpayers Units instead of 734 circles. The revamping process will be completed by December 2005.
During the conference, each RCIT gave a comprehensive presentation about performance of respective region with particular focus on refund, assessment and revenue collection.
The conference also decided that Deputy Commissioner Income Tax (DCIT) being in-charge of Circle will undertake all process including audit, legal and enforcement on functional basis. Education and facilitation of the taxpayers will be the hallmark of the new system.
The CBR Chairman, in his opening remarks, congratulated RCITs for achieving the tax collection targets of 2003-04.
Referring to 7 percent increase in direct taxes collection in 2003-04 as compared to 2002-03, the Chairman said that it needed further improvement, as this increase was the lowest as compared to other taxes. Moreover, it did not match with the overall economic growth of the country, he added.
Abdullah said that major changes were being brought in income tax system and other tax fields to make CBR a viable, progressive and reformed organisation. All our policies must be futuristic and pro-active, he remarked.
Referring to the tax collection target of Rs 580 billion for 2004-2005, the CBR chief ensured the Commissioners that all possible facilities and working tools would be provided to them to achieve this ambitious target.
He advised them to pay utmost attention to increase the number of return filers and broadening the tax base. However, he said, "Your prime job is to co-ordinate and facilitate the taxpayer".
M S Lal, Member (Tax Policy & Reforms), in his address, briefed the participants about various initiatives taken towards facilitation of the taxpayers. He also explained about the proposed functional structure of CBR and reforms being introduced in this regard.
Earlier, Member (DT) Salman Nabi briefed the participants about the overall performance and issues pertaining to income tax department. He informed the conference that the total revenue collection under Direct Taxes stood at Rs 162.6 billion in 2003-04, which was over and above the target.
He was confident that the revenue collection target of Rs 181.7 billion, fixed for 2004-05 will be achieved.
Dr Athar Maqsood briefed the Commissioners about CBR's revenue performance for 2003-04, particularly of direct taxes. He also gave analysis of returns, broadening of tax base, audit update and revenue targets for 2004-05.
Member Taxpayer Education and Facilitation, Habib Fakhruddin, speaking at the occasion, informed that CBR is launching a comprehensive media campaign from the beginning of current fiscal year for motivation, facilitation and education of the taxpayers.
He said that at the moment we have ample time to spread our message and to plan the establishment of Tax Facilitation Centres and Returns Receipt Centres and dissemination of the spirit and benefits flowing from the universal self-assessment, newly introduced turn-over tax scheme for retainers, the new user-friendly and simplified return forms etc and use of computer software, which brings a host of facilities on one hand and remove irritants on the other.
On the occasion, Director General LTU Karachi, and Zonal Commissioners and Commissioners presented the performance of their organisations.
During the conference up-date on results of audit disposal of pending cases, revenue targets for 2004 and strategy for its achievement were also discussed and necessary decisions were taken.
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