ISLAMABAD - The Federal Board of Revenue (FBR) has sent 12.785 million notices to non-filers in the last three years from 2019 to 2021.
Member Inland Revenue Operations Dr Ashfaq informed the Senate Standing Committee on Finance that FBR had issued 2.1 million notices to non-filers in fiscal year 2018-19, 6.3 million in 2019-20 and 4.3 million in 2020-21 on the basis of merit. The Senate Standing Committee on Finance and Revenue was held under the chair of Senator Talha Mahmood.
He further informed the committee that FBR has estimated Rs64 billion income tax revenue from the non tax payers. However, it has collected Rs2.589 billion tax besides around 1.315 million people have filed their income tax returns against these notices.
Speaking on the occasion, Chairman Committee said that the tax department deliberately issued these notices to meet the tax target before June 30.
The committee members, especially senator Azam Swati asked why the number of tax notices increased so much during 2019-20 and then how the number of notices suddenly decreased. Only 1.315 million people submitted Rs 2.55 billion tax. Only 39000 sales tax filers out of registered 186,000 are paying taxes. The purpose of issuing these notices is corruption, Senator Swati claimed.
Senator Farooq Naik said that either the notices sent were wrong or FBR officials have compromised due to which less tax was collected.
Dr Ashfaq told the committee that FBR sent the notices based on the data. We have served the notices to those who have not paid full tax.
Tax liabilities worth Rs. 1447 billion have also been estimated against 683,000 people. He also said that we do not say that all the officials sitting in FBR are angels but we took action against the officers on corrupt practices.
Our job is to increase the taxpayer. How can we increase the filers if we do not send notices? No taxpayer has ever been sent to jail, Dr Ashfaq added.
He also informed the committee that we have sent 10,000 notices on the tax evasion unearthed in the e-stamp system in Punjab.
Federal Minister for Railways Azam Swati proposed that those who send wrong notices along with tax evaders should be severely punished. Notices are issued not for tax but for corruption. Subsequently, the chairman Committee directed the FBR to enact legislation to send evaders as well as tax officers to jail who send false notices.