Big tax evaders, powerful/influential dodgers: writ of government established through prompt actions: Haroon

Special Assistant to Prime Minister on Revenue, Haroon Akhtar Khan has said that the writ of the government has been established by taking enforcement and recovery actions against big tax evaders and powerful/influential tax dodgers through effective enforcement strategy with strong political backing for recovery of unpaid sales tax, income tax and federal excise duty.
Talking to Business Recorder at his office at the FBR House here on Tuesday, he said that as a policy measure the Federal Board of Revenue (FBR) has focused on action against the big tax evaders, creating deterrence among the entire business community. Major action against powerful tax evaders of sales tax, income tax and FED is only possible in the presence of strong political backing. The tax officers are able to face pressures from influential quarters when they are fully supported by their seniors. It was a conscious decision to go after big tax dodgers and fraudulent units involved in tax evasion to give loud and clear massages to such units across the country.
"Yes writ of the government has been established through enforcement action against powerful tax evaders," he stated. He appreciated efforts of customs collectors at ports for checking smuggling of goods particularly smuggling of mobile phones has been eliminated at Karachi, Islamabad airports and other cities. The appointment of honest customs officers with goods reputation also plays important role in this regard.
He also pointed out that the smuggling of Iranian POL products has been totally eliminated due to serious efforts of Major General Sher Afgun Inspector General of the Frontier Corps of Balochistan. The customs department is also regularly co-ordinating with the FC Balochistan to control menace of smuggling.
He said that the government is also giving due importance to the accurate valuation of imported goods by the Directorate General of Customs Valuation Karachi. In the light of observations of local industries and sectors, accurate valuation of imported goods is necessary to protect the local industry and trade. Proper valuation of imported goods has been done after taking into account viewpoint of domestic industry.
Haroon Akhtar stated that the amended Finance Bill (2016) has incorporated some of the important recommendations of the Tax Reform Commission (TRC) to simplify tax laws and facilitate business community. To a query, he said that the FBR is required growth of around 20 percent in revenue collection to meet the annual target set for current fiscal year. The persistent decrease in sales tax rates on petroleum (POL) products in May and June 2016 has affected the revenue collection to the tune of billions. Moreover, the people have stopped supplies of goods like fertilisers, pesticides and tractors where substantial relief has been provided in budget 2016-17. It has also major impact on the collection of the FBR. People will resume supplies after applicability of the reduced/exempted rates of Finance Bill 2016.
Despite some negative factors, the FBR is confident to achieve the assigned revenue collection target for 2016-17, he showed commitment. He said that the amendments have been introduced in the bill so that the decision taken by Alternate Dispute Resolution Committee (ADRC) will be implemented in case Federal Board of Revenue (FBR) did not accept or reject findings within 90 days period. From July 01, 2016, an amendment had been introduced to Alternate Dispute Resolution (ADR) under which FBR would be restricted to decide the case in 90 days otherwise the decision taken by ADRC would prevail. It is a major decision to facilitate the taxpayers particularly business community. The measure would be instrumental in reducing litigation in courts and generating additional revenue. The ADRC is an effective system for recovery of the disputed amount in courts, he remarked.
Through another amendment in the Finance Bill, the tax department cannot attach bank accounts of taxpayers till Commissioner Appeal decides first stage of appeal of taxpayers. Under the proposed amendment, the FBR cannot attach bank accounts of taxpayers for recovery of taxes till first stage of appeal has not been decided by the Commissioner Appeals. It is a major facilitative measure for the taxpayers, who would have the opportunity to submit their viewpoint before enforcing harsh measures like attachment of their bank accounts.
Referring to the budget (2016-17), he said that a well thought consultative process has been followed in budget to hear viewpoint of all business and trade. The government has heard viewpoint of all stakeholders in detail. All proposals of the business community might not have been incorporated in budget due to revenue constrains, but detailed examination of each budget proposal has been carried out during budget preparation exercise. "The days are gone when budgets were prepared in closed doors", he remarked.
Hundreds of meetings have been convened with the traders, importers, associations, chambers and business community during the budget finalisation exercise. He was optimist that the consultative process would continue with the business community in the next budgets as well, Haroon Akhtar added. Special Assistant to Prime Minister on Revenue said that Pakistan and China would soon implement an electronic data exchange system to verify Certificates of Origin of Chinese goods being imported into the country, eliminating changes of frauds.