FBR drive against tax evaders from Jan 1

ISLAMABAD (APP) - Chairman Federal Board of Revenue (FBR), Sohail Ahmed said on Wednesday that drive against tax evaders would be launched from January 1, aimed at eliminating tax evasion and creating proper tax culture in the country. During the drive tax evaders would also be arrested so that everyone should pay his due taxes and participate in the nation building process, Sohail Ahmed told a Press conference here at FBR House today. He said that total number of NTN holders was 2.2m out of which only 1m pay their taxes. We will launch a campaign against the tax evaders who do not file their tax returns and those would also be arrested, he warned. We will arrest 100 to 300 tax evaders and give them exemplary punishment so that the culture of tax evasion is eliminated for the countrys prosperity, he remarked. He added that services of NADRAs database would also be utilized to confront tax evaders. Sohail Ahmed said FBR has collected the database of seventy five buildings of E-11 sector of Islamabad of whom, only 5 persons have paid taxes and only fourteen have filed their tax returns. He said that number of NTN holders was only 1.2m in 2004 which has increased to 2.2m in 2008. Referring to value added tax, the Chairman FBR said that draft of VAT would be formulated in the tax conference to be held in Dubai this month and would be sent in the National Assembly on December 31 for approval from the parliament. The Chairman expressed the hope that the revenue target for the first six-months of the current financial year would be achieved. He added in case of any shortfall in the target, steps for the collection of additional tax of Rs.25 to Rs.30b would be taken. However, he said that this would not put any burden on the common man. He added that experts have recommended that the ratio of VAT should be less than the General Sales Tax. Sohail Ahmed said that FBR is formulating an electronic tax return system in collaboration with the State Bank of Pakistan (SBP) for a permanent solution of the refund system to the tax payers. He said that FBR has realized a tax collection of Rs.263b against the target of Rs.270b set for the first three months of the current financial year 2009-10. He added that Rs.108b tax was collected in October this year while an amount of Rs.81b tax was collected November and this would further enhance when final tax is collected. The Chairman said that a target of Rs.123b tax has been set for the month of Dec and due to collection of advance taxes the set revenue targets for the six month of current financial year would be met. He added that due to imports, the taxes would also increase adding said that FBR has started various enforcement plans which would also help improve tax collection. He vowed to plug tax leakages in FBR tax collections specially in the import stage. He expressed the hope that FBR would be able to collect Rs.1380b taxes while the Int'l Monetary Fund (IMF) expects that Pakistan would be able to realize Rs.1368b taxes during the current financial year.

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