Action against big tax evaders: Parliament can empower FBR

Khawar Khurshid Butt, Member, Inland Revenue, Federal Board of Revenue (FBR), said on Wednesday that the Parliament has the authority to equip the Board with maximum enforcement powers to freely take action against the big tax evaders and dodgers, without any fear.
Responding to a query on performance of Indian tax authorities, he told the National Assembly Standing Committee on Textile Industry that the FBR "can also take major enforcement steps" against big evaders, on the pattern of Indian tax authorities. However, he added, the Parliament has to empower the FBR with such laws to enable it for taking stern action against evaders without any pressure. "The FBR is a tool which is in the hands of the Parliament. If Indian tax authorities are empowered by their parliament to take actions against tax evaders, our Parliament could also use FBR as an effective tool for taking actions against the violators of the tax laws," he said. A question was raised before the committee that "Indian tax department is freely taking action against influential and powerful persons; why Pakistani tax officials are not taking stern action against the tax evaders?"
Khawar admitted that every year the FBR proposes amendments in the tax laws through Finance Bill for obtaining powers to nab the tax evaders. The Parliament has the authority to approve or reject such taxation and enforcement proposals of the FBR. Even sometimes FBR seeks powers to amend tax laws for strengthening the enforcement machinery, but the Parliament did not approve such proposals. If the Parliament empowers the FBR to take action, the FBR can take any kind of actions to establish the writ of the government. The full backing of the Parliament would be instrumental in making the FBR a powerful institution by strengthening the tax laws.
He said that the change of mindset of tax officials takes some time, which is a gradual process as far as reforms are concerned. However, a number of key reforms have been introduced in the tax administration. Khawar said that the FBR can work with full powers and authority with the backing of the Parliament for improving revenue collection through enforcement of the tax laws. About the Expeditious Refund System (ERS), he said that the FBR is trying its level best to run the electronic sales tax refund payment system in a professional manner. The FBR would ensure that all stakeholders should be satisfied over the performance of the ERS.