Revenue czar says open to leveraging modern technology and NADRA’s huge database to the service of the mission.
By Staff Reporter
ISLAMABAD: Chairman Federal Board of Revenue (FBR) Asim Ahmad told journalists Friday in the presence of Federal Minister for Finance Miftah Ismail that the authorities had started collecting data from National Database and Registration Authority (Nadra) to help broaden of tax base.
He said that the FBR had decided to utilize technology to bring non-filers and under-filers into the tax net.
The Federal Board of Revenue (FBR) on Friday unveiled an ambitious plan to broaden the country’s narrow tax base involving the implementation of the track and trace system on tobacco industry as a High Court stay order against the initiative had been lifted.
He said fertilizer and cement would be the next two sectors to be brought under the Track and Trace System during the current fiscal year 2022-23.
The government had earlier implemented Track and Trace System on tobacco manufacturers and sugar industry. However, some tobacco sector players approached Peshawar High Court and obtained stay orders.
Major tobacco sector players, however, are in compliance. Pakistan Tobacco Company installed track and trace system at its Jhelum factory during the last fiscal year.
“Now the stay order has been vacated and implementation on track and trace system will be kick-started from July 1, 2022” the Chairman FBR said.
He also disclosed that Prime Minister Shehbaz Sharif instructed to devise strategic mapping for achieving targets of broadening of tax base and the envisaged targets would be tracked on quarterly basis.
The Track and Trace system will install stamps on production of selected sectors and it will help the FBR plug tax evasion. In the case of tobacco sector, if the track and trace system is installed on all domestic and multinational players, it could help bring in a lot of revenue.
The Chairman FBR said that the FBR envisages to bring 0.7 million small retailers into tax net as the government came up with fixed tax scheme for collection of fixed amounts through electricity bills.
He said that the FBR was looking to integrate some 4,000 Tier-1 retailers with its Point of Sale (POS) during the current fiscal year.
The FBR exceeded its tax collection target of PKR 6100 billion and collected PKR 6.125 trillion for last fiscal year to June 30, 2022.
Minister for Finance Miftah Ismail gave FBR a pat on the back for surpassing its annual revenue collection target. He noted how he had raised the target to PKR 6,050 billion to placate the IMF but was happy that the tax machinery had surpassed even the revised target through effective enforcement and diligent administration.
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