Tax assessees

The FBR is collecting different taxes through the system of withholding tax at import stage, supplies of goods/services, and a portion of taxes is also deposited voluntarily by the taxpayers.
All the way, there are so many provisions in the tax laws for punishing the bad taxpayers, but there is no system of applauding the good taxpayers, the taxpayers who defray their responsibilities in a better way and submit different statements of withholding taxes/compliance of rules/regulations of taxation and file their tax returns.
With a view to maintain the spirit of good taxpayers and to motivate the bad taxpayers for payment of taxes, according to law in the specified timeframe, it would be expeditious to introduce a system of awarding and rewarding through issue of Merit Tax Cards and any concession to the good taxpayers in the shape of tax credits against their normal liability, (on the pattern of section 65A of the Income Tax Ordinance, 2001 whereby a tax credit of 2/12% is afforded to the certain persons with certain merits).Keeping the above submissions in view the following suggestions/proposals are submitted for consideration: Display of names/snaps of good/highest income tax payers of the year on FBR's website
The good and the biggest 100 taxpayers, who have paid the highest amount of income tax (including withholding tax on import, supplies/services) in each category of the assessees be displayed on the website of FBR along with snaps of Chief Executive/authorised person nominated by the relevant assessee as per following categories (The snap is optional, the assessee can decline the snap on website).
i. Categories of Assessees of top largest taxpayers of the tax year for placement of their names with snaps on FBR's website for the tax year
2. Issue of Merit Cards viz Platinum, Gold, Silver and Bronze Tax Cards to the taxpayers who pay more than the specified amount of income tax in the specific tax year. This is in addition to first top 100 highest taxpayers
This is a sort of Accreditation Tax Merit Certificate to be issued by FBR to the good taxpayers for each tax year. This card may contain the Name of the taxpayer, snap of the Assessee (optional), tax year and the amount of tax paid by the taxpayer. The idea of this proposal is to issue a sort of "Tax Credit Card" indicating the contribution of the taxpayer in the shape of Income Taxes to the national exchequer.
The criteria for issue of such Tax Credit Cards may be considered as explained in the next paras:
i. Merit Rating/Criteria for Issue of "Tax Credit Cards" to the Good taxpayers
Notes
i. The Income Tax Card as above be arranged/issued by FBR in the shape/size and pattern of CNIC, and Bank Debit & Credit Cards etc.
ii. Necessary Brief particulars including snap of Assessee (optional only), Tax Year and the level of tax paid be indicated on the Tax Card as per limits mentioned against each.
iii. The Tax Card should be beautiful and electronically readable with other specifications.
3. Financial credibilities of holder of Tax Credit Card Holders viz Platinum, Gold, Silver and Bronze Tax Cards For Bank Financing Facilities etc.
Since the issue of the Tax Credit Cards indicates tax creditworthiness of the Assessee, therefore2 to promote credit worthiness of the good taxpayers in the eyes of the financial institutions/banks for affording the credit facilities to the good taxpayers, the banks/financial institutions may be suggested to afford preference to the holders of tax cards over other customers having same size and volume of business activities. The banks should give better weightage in the situation where the assessee/borrower has provided other required collaterals and afford good co-operation and financial package, considering the requirements of prudential regulations. For this purpose suitable legal provisions may be suggested to State Bank of Pakistan for amendments in Prudential Regulations.

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Categories of the Largest taxpayers for the tax Year

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                                   No of Largest Tax Payers in

                                                 Each Tax Year

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a) Public Limited Companies Quoted on Stock            Top 100

   Exchange or Other wise

b) Private Limited Companies                           Top 100

c) AOPs ie Registered or Unregistered Firms            Top 100

d) Sole Proprietorships/Individuals                    Top 100

e) All other Categories, Co-operative Societies -      Top 100

   & Other Authorities/bodies

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The amount of Income tax payments (including Withholding taxes) made by assessee for Entitlement of "tax credit" for each tax year for each category (PKRs)

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                  Platinum     Gold      Silver      Bronze

                  Tax Card   Tax Card   Tax Card   Tax Card

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Public Limited       200 M    100 M        75M         50 M

Companies

Private Limited      100 M     75 M       50 M         25 M

Companies

AOP/Registered        75 M     50 M       35 M         20 M

Firms

Sole                  50 M     35 M       20 M         10 M

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