Monday 6 June 2011

[PF:165290] FBR Notifies Govenrment Ministers to Pay Their Taxes

Area 14/8

Federal Board of Revenue (FBR) Member Inland Revenue Khawar Khurshid Butt has said that the department has served income tax notices to the members provincial assembly (MPAs) in Punjab and members national assembly (MNAs) to file their returns following the data revived after cross-matching with the National Database and Registration Authority (Nadra).

He said Chief Commissioner FBR Inland Revenue Lahore Ansar Javed and his team had developed tracking system for the FBR under which notices were issued to the potential taxpayers who had made taxable transactions during the ongoing fiscal year.

"The notices are being served on potential taxpayers irrespective of their power and status," he said addressing a press conference in the Income Tax House here Monday. He said under the new tracking system, the FBR had served 76,000 income tax notices to the potential taxpayers and as a response a good number of people had filed their taxable returns in April and May.

Singer Rahat Fateh Ali Khan was also served with income tax notice and he was also in tax house on Monday to get information about the notice. He said that he was unaware that his income was taxable and law of land as well. He, however, appreciated the FBR and said that he would pay all of his taxes after filing his income tax return. The FBR also served income tax notice on famous singer Ali Zafar for a big property deal he made during the ongoing fiscal year.

Khawar Khurshid Butt said the top political leadership of the country was aware of the question raised by the media and public about their tax payment so to achieve Rs 1,952 billion revenue generation target, it was crucial for them to pay taxes and declare their taxable assets as well. He also instructed the chief commissioners in the FBR to get information of the FBR staff and also ensure filing of their tax returns and those evading the taxes should be highlighted and action would be taken under the law.

Talking about achieving Rs 1,952 billion target, Butt said improvement in tax compliance, effective monitoring of withholding agents, broadening the tax base by adding the new taxpayers and evaders were needed.

He said the FBR was facing human resources shortage in tax broadening process which would be addressed by utilizing redundant tax machinery in the KPK.

He said that under special pakage announced by the prime minister for KPK, tax collection was limited there while highest tax machinery, including staff and vehicles, were posted there which would be posted in Lahore and other parts of country in next four to six weeks, in other words reshuffling of them would be made.

About the refund issue, Butt said the FBR had evolved the Electronic Refund System (ERS) under which 46,600 refund cheques of Rs 14 billion payments were paid to the taxpayers while 38 percent refunds complaints were left. He said the Lahore Inland Revenue performance was the best across Pakistan. Information regarding 300,000 high value transactions had been collected from various sources like purchase of immoveable property, registration and booking of vehicles, expensive schools/colleges, Lesco and club membership, in Lahore. On the basis of this information, 94,000 new taxpayers, 36,000 non-filers of returns for tax years 2010 and 21,500 cases of suspected under declaration of income had been detected, he said.

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