Undisputed tax arrears: FBR orders recovery of Rs 64.826 billion from defaulters

The Federal Board of Revenue on Tuesday ordered nation-wide recovery of undisputed income tax, sales tax and federal excise duty (FED) arrears worth Rs 64.826 billion from all defaulting units without distinction of public sector organisations.
Sources told Business Recorder here on Tuesday that the FBR Chairman Tariq Bajwa has expressed serious concerns on the failure of field formations in recovery of undisputed income tax, sales tax and federal excise duty (FED) arrears to the tune of Rs 64.826 billion. Out of total recoverable arrears of Rs 64.826 billion to date, income tax arrears stood at Rs 41.910 billion, sales tax Rs 20.885 billion and FED Rs 2.040 billion. Major tax arrears are related to the income tax which is followed by sales tax and the FED as per FBR data.
The tax authorities have also ordered immediate recovery of arrears from the public sector organisations having undisputed arrears. It has been considered as a key administrative measure in first quarter (July-September) 2013-14 for achieving assigned target.
According to sources, the accumulated arrears of Rs 64.826 billion clearly indicate that the undisputed arrears have considerably increased during past few years. However, no major action has been taken by the field formations for the recovery of the undisputed arrears.
Sources said that the FBR has also issued instructions to the Chief Commissioners of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) for the recovery of the undisputed income tax, sales tax and FED arrears. The Board''s instructions to the field formations said that the FBR Chairman has expressed his displeasure and taken serious note of the inability of field formations to effect recovery of domestic taxes arrears, which have been declared undisputed/recoverable by the units themselves. A statement indicating the undisputed recoverable arrears of Income Tax, Sales Tax and FED has been given by the LTUs/RTOs in the Monthly Performance Reports/Arrear Recovery Plan. Any change in recoverable/undisputed arrears as per the enclosed list viz-a-viz record of the LTU/RTO may be communicated to the Board for rectification, if any, FBR said.
The FBR has directed the field formations that all out efforts be made to immediately recover the recoverable arrears. The reasons for non-recovery along with the up to date progress made on the recovery from the required statement may be brought personally in the forthcoming Chief Commissioner''s Conference scheduled to be held on Monday 22.7.2013.
The FBR has also directed the field formations to provide list of arrears outstanding against public sector organisations falling within jurisdiction of LTUs/RTOs.