Special Assistant to Prime Minister on Revenue Senator Haroon Akhtar Khan has said that Finance Bill 2016 has not made any change in the customs duty structure on the import of petroleum products in budget (2016-17). On the conclusion of post-budget press conference here on Saturday, Haroon Akhtar told Business Recorder that the government has given incentive packages to exports, agriculture, industries, manufacturing and increased cost of non-filers of income tax returns in budget (2016-17). The priority has been given to incentives to the said industries. At the same time, the life of non-filers has also been made difficult through enforcement measures and enhanced withholding tax rates in budget (2016-17).
To a query on Super Tax, Special Assistant to Prime Minister on Revenue stated that the revenue to the tune of Rs 10-15 billion has been estimated from Super Tax. The FBR has collected the same amount from Super Tax in 2015-16. The levy was imposed for Tax Year 2015 on the income of individuals, association of persons and companies who are earning income of Rs 500 million or above in Tax Year 2015. For banking companies Super Tax was imposed irrespective of the quantum of income. Super Tax shall be charged at the rate of 4 percent for banking companies and at a rate of 3 percent for persons other than banking companies.
As far as non-filers are concerned, the FBR is making life of non-filers very difficult by increasing rates of withholding taxes on them. In the presence of third party data, computerization and automation, the non-filers would be left with no option but to file their tax returns or continue to pay higher cost of non-compliance. At the same time, there are filers, who do not properly deposit the actual amount of tax. There is a big gap between the tax payable and actual amount to be paid by certain filers of returns, he maintained.
He said that the government would ensure that the business community as a whole should not be harassed by the tax department. The FBR is also promptly taking actions on the intelligence reports of their intelligence departments against specific sectors involved in tax evasion. However, full opportunity has been provided to them to explain their position. Action has been taken against the tax evaders.
Moreover, the government also intends to introduce the proposed legislation of Benami Transactions (Prohibition) Act, 2016 to check the Benami transactions taking place in the country. The performance/special pay allowances of the non-filer tax officers of the FBR would be stopped, he added. He said that there is zero-tolerance for corruption in tax department. It is a gigantic task to completely eradicate corruption from the tax machinery. At the top FBR level, there is no corruption. Gradually the corruption is decreasing in the tax machinery. On the Tax Reform Commission report, he said that certain recommendations of the report are practicable which would be implemented in due course of time.
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