The Federal Board of Revenue (FBR) has decided to analyse mega projects of the Annual Development Plan for 2009-10 and foreign funded infrastructure development projects of international donor agencies to bring all kinds of contractors into the tax net.
The FBR would also approach National Highway Authority (NHA), Frontier Works Organisation (FWO), Cantonment Boards, and Planning Commission to register the contractors and subcontractors hired for execution of various projects for development of roads, bridges and building, etc.
Sources told Business Recorder here on Wednesday that a large number of contractors are engaged in developmental projects pertaining to roads, bridges and buildings under the Annual Development Plan 2009-10. It would be ensured that every potential contractor is registered, pays withholding tax (wherever required), and files income tax return.
Similarly, the FBR would also approach the provincial governments' project directors for foreign funded projects to check whether contractors are registered and are paying the due amount of tax. For example, the donor agencies give contracts to the local governments and provincial government departments for infrastructure development like buildings etc.
The information of the contractors available with the Planning Commission and local governments would be used to identify the unregistered contractors and their subcontractors for bringing them into the tax net. Sources said that the FBR has provided a list of government organisations and institutions to the directors-general of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) for registration of contractors with the income tax department.
To register and recover income tax from contractors, the FBR would approach the NHA, FWO, city governments, development authorities, provincial directors-general, roads, cantonment boards/defence housing authorities and data available with the newspapers.
Sources said that the Annual Development Plan for 2009-10 would be thoroughly scrutinised with the help of data available with the Planning Commission. In this regard, mega projects of the Annual Development Plan for 2009-10 would be analysed to bring contractors of roads and buildings into the tax net during current fiscal year.
The FBR has also decided to approach the city governments, cantonment boards, development authorities like KBCA, LDA and CDA, etc, provincial government project directors for foreign funded projects to collect data on the contractors hired by these departments/authorities. The information available in the newspapers would also be utilised to register potential contractors with the income tax department.
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