In an attempt to encourage more taxpayers to play their part and increase collection of revenue, the Finance Minister, Ishaq Dar has instructed Chairman FBR to compile a thorough plan to be executed in the upcoming finance bill.
According to a spokesperson for the ministry, the minister gave several directives to the FBR team.
Chairman FBR along with his senior officials was briefed on Sunday about the government’s instructions to ensure that a practical plan is laid down by the board so that its implementation reaps the desired fruit.
The Finance Minister seemed pretty focused on establishing his terms regarding effective strategies to increase direct taxes and was insistent that the FBR takes the necessary measures to facilitate the voluntary taxpayers/filers.
“There should be a clear distinction between filers and non-filers,” he said.
The meeting also covered the many models presented to the Finance Minister by the FBR team, practiced by countries worldwide to expand their tax net. Amongst the many models viewed during the briefing, the Indonesian model best reflected the conditions relevant to our tax system and was discussed in detail.
Even though the finance bill is set to be presented six months from now, the government is eager to prepare ahead and has instructed FBR to have a plan in place by the next meeting.
Looking into facts, the Economic Survey 2015-2016 states that Pakistan’s tax structure relies majorly on revenue collected through indirect taxes.
However, in keeping with multiple tax reforms, the division of direct taxes has seen a steady rise and is expected to increase in the prevalent fiscal year.
Source: Daily Times / Customs Today
