Tariq Mahmood Pasha, Chairman Federal Board of Revenue (FBR) has said the budgetary revenue target should have been increased by 10 percent instead of 19.2 percent to fix Rs 4013 billion target for ongoing fiscal year. Speaking at an annual dinner hosted by Karachi Tax Bar Association (KTBA) at a local hotel here, he said that FBR was not revenue target fixer but implementer; adding that budgetary target should be fixed in accordance with other factors, i.e, country's growth, inflation rate, etc.
Admitting to comprise due tax recoveries in case of approaching taxpayers for advance tax payments, he urged the KTBA to assist revenue body for broadening of tax base and to plug revenue leakages. He also invited the Bar to submit proposals related to administrative measures and budget measures separately. The chairman FBR apprised that the figures of active taxpayers had risen to 1.2 million from 1 million till February.
In his welcome address, Abdul Aziz Tayabani president KTBA stressed the need of improving cordial relations between tax authorities and tax practitioners to dispel the impression of squeezing already registered taxpayers for achieving revenue targets.
The KTBA in its budget proposal last year suggested the board to eliminate section 214D of Income Tax Ordinance, 2001 but the same couldn't be included in final budget draft, he lamented and urged the chairman FBR to omit the same in next budget as it was discouraging taxpayers for e-filing of income tax returns, due to automatic selection in audit over late e-filing of returns.
Advocating against the monitoring of withholding agents, Tayabani suggested the chief FBR to make efforts for bringing non-filers - those records were available in database into tax net. Furthermore, he said that there was a need of evolving mechanism to exclude individuals, who were not required to file returns, from non-filers' list besides drafting policy to freeze the tax rate on dividend income to facilitate senior citizens at maximum. President KTBA also recommended the chairman FBR to make amendment for extending the date of e-filing of statement under section 165 to 25th day of the month instead of 15th day.
In his speech, Abdul Qadir Memon President Pakistan Tax Bar Association (PTBA) said that there was a need to identify the loopholes that caused failing many schemes of broadening the tax base. He later advised tax practitioners to show responsibility and assist the FBR in maximizing its revenue collection in order to help the government to avoid seeking foreign financial assistance at the helm of country's affairs. A large number of KTBA members and FBR officials were present on the occasion.
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