In its proposal sent to the Ministry of Finance, Federal Board of Revenue (FBR) has requested to publish directories for non-filers of tax returns.
These directories would be based on three major tax categories including:
- Sales Tax
- Withholding tax
- Income Tax
The Board has asked the Ministry for publishing these tax return directories by May 1st.
It should be noted that FBR already publishes directories for tax filers and tax filer parliamentarians.
For this purpose, the proposal will be sent to the Finance Minister Ishaq Dar. Details about the non-filers have been collected by the FBR from NADRA, power distribution companies, city development authorities, private housing schemes, provincial property, vehicles registration offices etc.
Non-filers will not be given any kind of concessions according to FBR’s proposal. They will face heavy penalties, their bank accounts will be seized all of their assets will be confiscated and they will be sent to jail.
New System of Tax Collection
Besides this the board is going to develop a new system of tax collection through a common returns filing and tax payment system. The implementation of this plan has been delayed as the provincial authorities are unwilling to merge their existing system with the federal government’s system.
Failure of Amnesty Scheme
Improving the tax collection system is one thing, bringing everyone into the tax net is another. FBR launched a new amnesty scheme for retailers across Pakistan to include them in the taxpayer group. They were allowed to declare just 1% of their declared assets as income tax to be included in the tax net.
Unfortunately the scheme did not work as the board intended with just a handful of 1.5 billion (estimated) retailers filing their tax returns.