Lack of automation for IT deduction at source: GPO incapable to differentiate between filers, non-filers

The General Post Office (GPO) being withholding agent would not be able to implement the Federal Board of Revenue (FBR) 'Active Taxpayers List for Income Tax Deduction at Source' at all its 1200 sub-offices for charging enhanced rate of withholding tax on vehicles from those not part of the list or non-filers of returns.
Sources told Business Recorder here on Tuesday that the GPO's ability to differentiate between the filers and non-filers of returns has been pinpointed by Chief Commissioner RTO-II Lahore in a communication to the FBR. Due to lack of automation at the sub-offices of the GPO, the implementation of 'Active Taxpayers List for Income Tax Deduction at Source' may not be possible at the GPOs across the country.
The General Post Office (GPO) also acts as a withholding agent and collects tax under section 234 of the Income Tax Ordinance 2001. GPO officials pointed out that there are approximately 1200 sub-offices of GPO in the country and most of them are not automated. Therefore, the implementation of Active Taxpayer List is not possible at all the sub-offices. RTO-II Lahore has suggested that a mechanism viz-a-viz verification of filer may be devised to cater to the situation where no computers are available with the withholding agents eg Post Offices in peripheries, Chief Commissioner RTO-II Lahore added.
The 'Active Taxpayers List for Income Tax Deduction at Source' contains names, Computerised National Identity Card (CNICs) numbers and National Tax Numbers (NTNs) of the Active Taxpayers on the income tax side. The FBR has published the 'Active Taxpayers List for Income Tax Deduction at Source' on the basis of Tax Directory for Tax year 2013 to be communicated to banks and other withholding agents for deduction of higher rates of withholding taxes from un-registered persons. The names of persons not mentioned in the Tax Directory are non-filers. The FBR has not disclosed the information about the tax paid to the withholding agents, but only CNICs/NTNs have been mentioned in the list.
Active Taxpayer List (ATL) will be updated by the Federal Board of Revenue (FBR) on fortnightly basis and it will be amended if the taxpayer has filed the tax return or statement under Income Tax Ordinance, 2001.