Tax Registration and Investment Scheme: FBR to share key features with Prime Minister tomorrow

The Federal Board of Revenue is expected to share key features of the 'Tax Registration and Investment Scheme (TR&IS)" with the Prime Minister Raja Pervez Ashraf during his visit to the FBR House on October 1, 2012. Sources told Business Recorder on Saturday that FBR Chairman Ali Arshad Hakeem and FBR Senior Member Tax Policy Asrar Rauf are likely to brief the PM on the TR&IS and the details of potential persons, who would avail the said scheme.
The TR&IS is expected to be launched in mid-October 2012 as the FBR has to complete legal formalities and some time is required for launching of the scheme. The FBR has obtained information on about 1.3 million potential persons having National Tax Numbers (NTN), but not filing their income tax returns. The second category included 2.3 million potential persons, who have neither obtained the NTNs nor filing their income tax returns. They have taxable sources of income as per expenditures and assets. The major focus of the TR&IS would be on these two categories of persons.
The Prime Minister is expected to visit the Federal Board of Revenue (FBR) on Monday (October 1) to review progress on revenue collection, reforms in tax administration and overall initiatives on broadening the tax base. The PM is likely to address the tax officials of the FBR Headquarters and highlight the importance of FBR in collection of revenue and documentation of the economy. The PM is likely to emphasise the need to achieve the revenue target set by the government in the budget (2012-13) by plugging loopholes and expanding the tax base.
Tax managers will inform the PM that FBR will introduce the scheme for the registration and regularisation of the un-explained assets and income on payment of "registration tax" and "investment tax'. The registration tax for availing the scheme shall be payable from October to December 30, 2012 at the prescribed amounts depending on the time of payment.
Tax authorities are expected to apprise the PM about the revenue position and initiatives taken by the FBR to facilitate the taxpayers. He is also likely to inform the PM about steps taken by the FBR to streamline and reorganise the tax collection system with the objective of simplification in tax payments. The FBR's proposed strategy to raise tax-to-GDP ratio and taxation/relief measures of budget (2012-13) would also be shared with the PM, sources added. The PM has twice postponed his visit to the FBR in the past.