The Federal Board of Revenue (FBR) will send 100,000 notices next week to potential taxpayers, including high net worth individuals, involving economic activities to the tune of trillions of rupees.
FBR Member Inland Revenue (Operations) Seema Shakil informed mediapersons Tuesday that the FBR has already sent the first batch of 100,000 notices to the high net worth individuals for bringing them into the tax net. The next batch of 100,000 notices would be sent next week to the high net worth individuals, who are not into the tax system. The process of issuance of notices would continue in a structural manner.
Under these notices, information about economic activities involving trillions of rupees has been based on authentic data, said Seema Shakil.
In the second phase, the FBR will send 100,000 to the potential persons for broadening the tax base. "We have banking data of withholding, profit on debt and third party information including foreign travel, property transactions and vehicles purchases," she added.
The FBR has received huge banking information to the tune of billions of rupees which would be used for expanding the tax base.
From 6,000 high net worth individuals, the FBR has already recovered an amount of Rs 2.8 billion.
To a query, FBR Member Information Technology (IT) Mehmood Aslam said that all notices are system generated and even if the taxpayer tears apart the notice, the concerned taxation official still has electronic copy in its system.
The FBR Member Inland Revenue (Operations) said that the 35 percent import compression had negative effect on revenue collection at the import stage during July 2019. The collection of all taxes including customs duty, sales tax and withholding tax at the import stage went down during July 2019. She said that the collection of customs duty at the import stage was down by Rs 4 billion during July 2019 when compared with July 2018. "If there is a government policy of import compression, it would result in decrease in revenue growth at import stage," she further said. FBR Member Inland and Revenue (Policy) Dr Hamid Ateeq Sarwar said that there is a target to increase Sales Tax Registration Numbers (STRN) up to 400,000 people, including commercial and industrial consumers, in next three years.
"Around 250,000 people are already registered with FBR's sales tax net, however only 41,000 are paying the sales tax, which is very low," the FBR Member said. Dr Hamid Ateeq said that the FBR can improve performance of sales tax by ensuring collection from manufacturing and retailers. "We have 100 percent coverage from import sector and the Board has been working on manufacturing and potential retail sector to increase its sales tax base," he added.
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