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  • Apr 12th, 2017
  • Comments Off on FBR directed to take measures to meet revenue target
Finance Minister Ishaq Dar has directed Federal Board of Revenue (FBR) to take enforcement measures to meet the assigned revenue collection target of Rs 3.621 trillion for 2016-17. Sources told Business Recorder here on Tuesday that Finance Minister visited the FBR Headquarters and addressed the FBR members headed by FBR Chairman Dr Muhammad Irshad on the issue of achievement of target.

According to sources, Ishaq Dar's address mainly focused on measures to overcome revenue shortfall during current fiscal year. Finance Minister directed the tax managers to meet the target or at least close to the target of Rs 3.621 trillion for 2016-17. "Efforts should be maximise to overcome shortfall in last quarter of 2016-17" sources quoted Dar as directing the FBR. Finance Minister and FBR team of officials discussed measures to overcome shortfall in last quarter (April-June) of 2016-17.The revenue shortfall would be overcome through administrative and enforcement measures. FBR officials informed that the revenue collection for the first nine months has reached Rs 2260 billion.

FBR officials briefed the Finance Minister that the special tax recovery officials have been deputed in the field formations to ensure recovery of arrears and recoverable tax demands as admissible under the law. The recovery of current tax demands and recovery of arrears is the prime focus of recovery plan.

Around Rs 300 billion is stuck up in different courts, including Supreme Court of Pakistan and high courts. The important area is to speedup recovery of taxes from cases under litigation at various judicial fora. The amount involve over Rs 300 billion under litigation including cases where stay has been granted and are still pending in courts. The vacation of stay orders at the level judicial fora would be instrumental in getting close to the assigned revenue collection targets for the current fiscal year. A large number of cases are pending in courts involving huge amount of revenue which requires a comprehensive strategy by each RTO/LTU to liquidate pendency and recovery of the unpaid duties and taxes.

FBR is also in the process of compiling a database of non-filers to ensure payment of higher rates of withholding tax from non-filers. There is a possibility of compiling a tax directory of non-filers to document them and bring them into the tax net. Another option is to effectively utilise the data of tax directory of non-filers for increasing revenue collection.

According to the sources, it has been decided to expedite audit of cases selected through parametric process of balloting. Another major area to be focused is the completion of pending audit. A number of cases have been selected by the field formations for audit which are still pending. The demand created through audit and speedy recovery of the same can also generate additional revenue.

The FBR will also focus on withholding tax audit in the field formations. The FBR will also implement a uniform system of withholding tax audit of banks to streamline withholding tax collection from banking sector on real time basis. Through effective monitoring of withholding agents, the collection of withholding taxes would be increased in last quarter of 2016-17.

The income tax initiatives during 2016-17 include taxation of real estate sector, imposition of withholding tax (WHT) on transfer of immovable property, imposition of capital gains tax and taxation of builders/ developers under section 7C and 7D of the Income Tax Ordinance, broadening of tax base (more than 465,000 notices issued over the last three years), enhancing the scope of differential taxation and real time monitoring of withholding agents down to unit level through a digital assistant/ directory. The initiatives also included change in Audit policy and parametric selection of audit cases for tax year and rationalisation of jurisdiction for optimal output ie corporate cases consolidated under corporate RTOs/ zones and remaining jurisdiction organised on territorial basis.



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