ISLAMABAD: The federal government has actually constituted 2 committees to prepare a comprehensive strategy by the end of present month for expansion of tax base with identification of brand-new taxpayers.
The boards [will certainly work] on broadening of tax base as well as incentivising consumers with a system of rewards for sale tax obligation invoices by the end of July, Special Aide to the Prime Minister (SAPM) on Money as well as Revenue Dr Waqar Masood Khan informed Occur to Saturday.
He claimed the suggestions shared by the committees would certainly be presented at the Economic Advisory Council’s conference.
The federal government already took a number of procedures in the last budget plan to widen the tax obligation base of the country, the SAPM included.
Proposed policy will certainly recognize brand-new taxpayers, go for elimination of exemptions
The proposed policy will stress on growth of tax obligation base via recognition of brand-new taxpayers, steady elimination of exceptions and concessionary provisions and decrease in tax obligation prices. “We would also shield the existing taxpayers to ensure that no additional burden is positioned on their tax responsibilities,” he stated.
The income tax returns for tax year 2020 have reached 3.01 million contrasted to 2.67 m in Tax obligation Year 2019, showing a rise of 12.5 per cent. The federal government has currently announced that it will have more than 7m taxpayers’ data which will be traced to bring them under the tax obligation web.
Information assembled by the National Database as well as Registration Authority will certainly also be utilized in widening of tax base, the SAPM added.
“Besides, a major slab of government technique would be the development of the GST base. Hereof, the Federal Board of Revenue (FBR) would bring right into the tax obligation web all retail and wholesale deals which are utilizing arising and also advancing digital as well as digital payment systems,” he discussed.
“To this result, we would assist traders set up the point-of-sale (POS) tools and link it as much as the FBR system So far 11,100 point-of-sale terminals have actually been integrated with real-time reporting system of the FBR,” he added.
The FBR has already finalised the functional Terms of Referral (TORs) for integration of stores into the POS system in consultation with key stakeholders.
The FBR will certainly also gather data by taking on acting measures such as ‘Mystery Purchasing’ workout to identify abnormalities in addition to including brand-new participants into the system to yield efficient results.
Mr Khan claimed the FBR would certainly incentivise customers through a system of rewards for sale tax obligation invoices via an open ballot on a monthly basis. The board will offer its referral for the execution of this system, he added.
Hereof, an unique cell has been established in the FBR headquarter making up seasoned retail organization experts and young policemans that would be participated in rolling out the plan and also ensuring its effective procedures.
The number of registered sales taxpayers in the FBR information website was roughly 150,000 for Tax obligation year 2019. Just 20pc of registered sales tax obligation units in the country really paid any type of tax, with the remainder declaring either null or nil returns.