Half of the Registered Companies Don’t File Returns: FBR Chairman

Chairman Federal Board of Revenue (FBR) Shabbar Zaidi has revealed that only 50,000 out of 100,000 companies registered with the Security and Exchange Commission of Pakistan (SECP) file their tax returns. Zaidi made this revelation on Wednesday while addressing a press conference in Islamabad.

The FBR chairman said that the law binds every registered company to file its returns irrespective of their functionality or financial situation.

Shabbar said that he had apprised the SECP chairman of the fact and they will soon launch a crackdown against non-filers.

“I have spoken to SECP chairman, either he will remove the [defaulter] companies or I will,” Zaidi said.

No Amendments in Law

The FBR chairman refuted the notion that he was going to amend the law related to freezing accounts of defaulters.

Zaidi said that he instructed a pre-approval from him and a 24-hour notice to the concerned party before freezing of an account.

He added that the decision was taken on complaints of several filers that FBR officials were bullying them and had frozen their accounts without any prior notice. He stressed that until the amnesty scheme lasts the FBR would try to go for voluntary compliance.

Shabbar said that he was in favor of voluntary compliances and will create a filer-friendly atmosphere to promote it. “I believe if the atmosphere is improved, voluntary compliance will increase.”

Golden Opportunity for Non-Filers

He said the revenue shortfall was quite massive this year and reducing it to nil in just two months was a tough ask.

“However we have introduced a special offer for non-filers in the Asset Declaration Scheme 2019,” he said, adding that everyone can clear their pending liabilities by filing just two percent of tax.

The offer is valid until June 30, Shabbar added, urging media to propagate it to the maximum people.

  • Defence spending increased 24% compared to last year. If you file taxes it’ll be wasted on defence.

  • Agree with @sh .
    Whatever you do nothing can force people to become filers unless they transparently know where their hard-earned tax money will be spent. Especially without 3rd party financial audit of defence spending.
    And delinquent + corrupt FBR officials will keep bullying and asking for bribes from tax payers by either random audits or otherwise. FBR needs to tame them first.

  • Urban, city commuter, coach, mini-bus Mazda and likes operates in Karachi since year 1977 when Mazda bus was launched still on road and operative with CNG, roof with holes, passenger standing has no handle to hold when standing. Alright but the SECP and FBR compell an individual traveller by Mazda coach has not received a ticket, which is essential condition under the UN/WHO Road Safety Commission to provide passeenger/traveller by any transport should have a ticket which is a receipt entitling the individual for compensation to Group Insurance to any passenger if/when injured while travel, board the bus, embarking/dis-embarking the bus under rules of SECP for all transport to buy insurance policy coverage for insurance. Any bus without any underwriting for insurance cover under SECP is a violation under SECP and should be subjected to enforcement and punitive action under law. I request the enforcement agencies/authorities for compliance of tax, and issuance of ticket, and holding a group insurance for bus coach, mini Mazda with 3.5′ ft., elevated from ground stair which may injure the individual. Please make sure ticket is given always without any question from yesterday.

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