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ISLAMABAD: The caretaker Minister for Finance and Revenue, Dr Shamshad Akhtar, has sought updated data of electricity users from power Distribution Companies (Discos) and K-Electric, enabling Federal Board of Revenue (FBR) to identify potential new taxpayers and collect taxes from the retail sector, sources in Finance Ministry told Business Recorder.

The caretaker Finance Minister has sought this data at a time when the entire machinery of federal and provincial governments has already launched an “operation” against electricity thieves and chronic defaulters of Discos.

Federal Board of Revenue is already collecting Rs 740 billion tax from electricity consumers across the country through Discos and K-Electric, which have time and again requested the authorities to transfer this task to some other tax collection agency.

2022-23: Rs160bn ST collected from power sector

However, the government has not succeeded in taxing retail sector despite numerous efforts by the past administrations including the PDM government, which withdrew the levy for political considerations.

In a letter to caretaker Minister for Power and Petroleum, Muhammad Ali, caretaker Finance Minister invited his attention towards the overall fiscal predicaments of the government of Pakistan where revenue collection lags far behind the expenditures.

According to caretaker Finance Minister, domestic revenue mobilisation is one of the top most priorities of the federal government, adding that for effective resource mobilisation, the provision of real-time data of economic transactions is imperative.

Citing her recent discussions with the FBR, Finance Minister has claimed that she noticed that data related to users of Discos is outdated, which poses a significant problem for accurate tracking of users of current electricity consumption.

“The gravity of the situation becomes evident when we consider that the FBR possesses data of 3.6 million commercial and industrial electric meters, but only around 600,000 include the CNIC of the connection owner (not the current user),” she added.

Finance Minister further noted that fewer than 200,000 can be linked to tax declarations, and merely 13,000 are registered in the sales tax records.

“While data updates are necessary for domestic users as well, it is recommended that Power Division directs Discos and K-Electric to prompt current users of commercial and industrial connections to update their profiles specifically their name, CNIC, and Mobile Cell number via the designated web portals,” she added.

Accordingly, urgent action is needed by all Discos and K-Electric to update current electricity user data, enabling FBR to identify potential new taxpayers and collect taxes from the retail sector.

She requested Power Division to issue direction to all Discos and K-Electric to update records of their industrial and commercial consumers within two weeks positively and share the same with the FBR.

Copyright Business Recorder, 2023


Comments are closed.

Maqbool Sep 25, 2023 09:38am
Another way of identification of new Tax Payers would be to get lists of (1) owners of SUVs (2) owners houses/ plots of 2 kanals ( 1000 sq yds) (3) list of international travels flying 1st class or Business class . But most of all is to be serious in this venture rather than impress the public and do nothing .
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WarrenDesiBuffet Sep 25, 2023 09:51am
TAX agrricultural income before all else!
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Khan Sep 25, 2023 10:15am
Such data collection for decision making is imperative for success in future.
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Saeed Sep 25, 2023 10:22am
Re impose wealth tax and estate duty
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Dr fahad Sep 25, 2023 01:13pm
@WarrenDesiBuffet, this will increase food cost . By taxi fertilizers and agriculture the food cost will be par to international price
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Hafeez Sep 25, 2023 02:11pm
Agriculture tax is the domain of province, federal govt has no say. This is the funniest thing as federal government passes the blame to the provinces and there is nothing one can do about the provinces. Best way to fool everybody and get away with it.
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Shahid Khan Sep 25, 2023 02:27pm
Elections kaaaraaao aur Ghar jaaaooo
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Tariq Qurashi Sep 25, 2023 02:37pm
Everyone's NTN number should be their tax number, and everyone should have to put in a simple tax return on-line even if it is a nil return. This self-assessed tax return should be available in Urdu and English. This will bring everyone into the tax net.
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Maqbool Sep 25, 2023 03:02pm
@Saeed, but in Pakistan everything is off the books. So only the honest will pay as usual. Anyway Supreme Court ruled Wealth Tax is illegal in Islam , and Estate Tax is covered by Zakat .
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Shad Sep 25, 2023 03:36pm
Tax more on salaried persons. This is is the most easiest way of tax collection and never ever give them any facility. Fikar na faqa aish kar kaka. My wife is a housewife and house is her name. I am earner and tax payer and pay electricity bill, but income tax is being charged on electricity consumption in my house hold wife' name. Pathetic isn't it.
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Kureshi Sep 25, 2023 04:52pm
Pension of any value is fully exempted from tax. I suggest that 5% flat income tax may be imposed on persons drawing more than one lakh as monthly pension
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Arif Patel Sep 26, 2023 09:11pm
This exercise can not achieve desired results as so many meters are tempered, so many large users have switched to solar system and in commercial sector shops are running by tenants.
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Mubeen Siddiqui Sep 27, 2023 09:04am
Government k saray institutions main Mafia baheta hua jo every month ap k or hamari jaeboon paey daka maar raha heh
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