ISLAMABAD: The newly-appointed Federal Board of Revenue (FBR) Chairman, Javed Ghani, has issued his first policy directive to the chief commissioners and collectors of customs to submit their proposals for new administrative and enforcement measures for increasing revenue collection and plugging loopholes during 2020-2021.
In this regard, the FBR has issued instructions to the field formations, here on Wednesday.
According to the FBR, the chairman FBR has desired that in order to meet the assigned revenue collection target of Rs4,963 billion for the current fiscal year, all commissioners/collectors and chief commissioners/chief collectors furnish proposals/suggestions for new administrative and enforcement measures for increasing revenue collection and plugging any loophole, which may exist at present.
All chief commissioners and collectors are requested to furnish proposals by July 15, 2020, the FBR added.
During the technical briefing of the FBR on taxation and relief measures on budget (2020-2021), former Chairperson FBR Nausheen Javaid Amjad along with Javed Ghani, Dr Hamid Ateeq Sarwar, Member IR Policy and Bakhtiar Muhammed, Member FATE, the FBR high-ups estimated that the tax machinery could generate Rs200 to Rs300 billion through effective enforcement and broadening of narrowed tax base in 2020-2021.
However, the details of such enforcement and administrative measures were not shared with the media.
Through Finance Act 2020, one of the major enforcement measures introduced by the government in the budget 2020-21 is empowering the FBR to have real-time access to information and databases to the board by various authorities such as the NADRA, the FIA, provincial excise and taxation departments etc.
In case of non-compliance, the FBR will be empowered to impose penalty against these departments and individuals after six months meaning after December 31, 2020.
In order to comply with the FATF requirements, the FBR has proposed to get details of those who are providing donations to Non- Profit Organizations (NPOs) for strengthening of compliance regime.
The return filers would now be required to submit "Taxpayer Profile" electronically including particulars of bank accounts, utility connections, business premises including all manufacturing, storage or retail outlets etc.
Under Finance Act 2020, the FBR has introduced Section 114 (A) in the Income Tax Ordinance through which in addition to filing of annual tax return.
The return filers will be required to submit "Taxpayer Profile" electronically accompanied by such annexures, statements or documents as may be prescribed on the web of FBR (i.e. iris).
The FBR has introduced the concept of "agreed assessment" for the taxpayers, who wanted to settle their cases with the tax department, by offering tax before an assessment oversight committee.
Copyright Business Recorder, 2020
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