National ST Return launched: Tarin issues warning: taxes must be paid to avoid legal action

ISLAMABAD: Finance Minister Shaukat Tarin Friday requested the entire nation that the non-filers and those liable to pay taxes should “immediately start paying their due share before we approach them in the coming days, backed by authentic data,” to avoid legal action under the law.

Finance Minister Tarin Friday launched the ‘National Sales Tax Return’ for all federal and provincial sales taxpayers with the resolve that it would promote standardisation of taxability and tax rates and automatic input credit and refunds.

Addressing the launching ceremony at the FBR Headquarters here, Tarin said that non-filers should voluntarily come forward and pay taxes before we soon approach them.

The finance minister announced that he wanted to share good news with the entire nation that the un-registered persons would soon be approached backed by authentic data and estimated tax liability in the coming days.

We have collected data of millions of taxpayers including bank accounts information, utility bills, travel and other data. There is no need for giving notices to the people in the presence of concrete data.

Govt to inform unregistered taxpayers about their tax liability: Shaukat Tarin

“I promise that there would be no harassment,” Tarin said. With the use of technology, the data would be shared with estimated tax and their financial transactions and expenditures. The draft tax returns would be shared with the non-filers and ask them to rectify any mistakes.

They would be allowed to consult the panel of auditors to check their draft returns. Even then, if the non-filers would not pay taxes, then the law would take its own course.

He said that I am sharing this news with the nation because we have all the information about these people and only “switch” needs to be turned on to start the exercise.

“Only two million people pay taxes in Pakistan, but this system will soon change,” the minister said, adding that the government and the FBR plans to reach out to the people with the help of technology and if they still did not pay taxes, legal action will be taken against them.

“Everybody should pay taxes before we approach them,” Tarin stated, urging tax evaders to register themselves before the government or the FBR questions them.

“The time has come that the people should discharge their national obligation of paying taxes,” he remarked.

He further said that the retail has sales of 18 trillion, but only 3.5 to4 trillion is documented and the remaining is out of the documented regime.

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Tarin further said that the Finance Supplementary Bill, 2021 has not been tabled for generating revenue.

This new money bill is not for collecting taxes. Out of Rs343 billion from withdrawal of exemptions, Rs160 billion would be refunded to the pharmaceutical sector, whereas, Rs110 billion to the importers of capital goods and plant/machinery.

“We do not need this tax under the money bill but only want documentation and removal of distortions”, he added.

The finance minister reiterated that sustainable development is only possible, if people pay taxes. “We will facilitate taxpayers; however, everybody has to pay taxes,” Tarin said.

The finance minister maintained that the simplification of the tax system increases tax revenue, adding that if people do not pay taxes, a country cannot progress.

Tarin said: “If I stay in this office, I assure everybody that not only people would pay income tax but everybody would have to pay sales tax as well.”

He was of the view that people live in big houses, travel in luxurious cars, and dine in at expensive restaurants, but when it comes to paying taxes, people pay a very little amount.

Copyright Business Recorder, 2021