Central Board of Revenue (CBR) Chairman Abdullah Yousuf has hinted at giving exemption to earthquake victims from payment of income tax.
Talking to newsmen during his visit to Medium Taxpayer Unit at Income Tax office here on Sunday, he said that presently there is no such proposal to give income tax exemption in earthquake hit areas, but hastened to add that the facility might be provided, keeping in view the circumstances.
He said that if the decision was taken about providing income tax exemption, it would be applicable only for quake hit districts of NWFP, as Azad Jammu and Kashmir (AJK) has its own set up and has no relevance with CBR.
CBR Chairman said that appeals were being made by people to waive payment of utility bills by earthquake victims, but no such demand was made in regard with income tax.
However, keeping in view the circumstances, the CBR might provide waiver to earthquake victims from payment of income tax, he added.
The department, he said, has already exempted donations to relief funds and relief goods from sales tax and income tax in a bid to encourage and support the relief operation.
In response to a question about relief goods, he said the disaster was so devastating that the relief goods so far reaching the country were insufficient. The government, he said, was also holding a donors conference on November 19 to seek more donations from foreign countries.
About impact of earthquake on revenue collection, he said he was not anticipating much effect of the disaster on economy. There was no big industry in the earthquake-hit area, while AJK does not come in the jurisdiction of CBR, he added.
Referring to his meeting with Chairman of Frontier Customs Clearing Agents Group, Zia-ul-Haq Sarhadi, and importers and exporters at Peshawar Dry Port on Sunday, Abdullah said there was dire need of developing the Peshawar dry port or modern lines.
He said there was a role model of launching a joint venture of Pakistan Railways and business community of the province to set up a trust for this purpose. The railways will provide land and businessmen would develop infrastructure. The model would be followed in Peshawar like other cities and dry port would be developed on modern lines to facilitate the businessmen of NWFP and Afghanistan, he added.
When asked about official policy about registration of non-duty paid (NCP) vehicles, he said CBR was studying the issue in depth and any decision would be taken after completion of the study.
About revenue collection, CBR Chairman said that in the first quarter the number of taxpayers filing the return and revenue collection had registered substantial increase over last year.
"During the four months of the current year, we have achieved more than Rs 200 billion against the target of Rs 690 billion which is two percent above revenue collection percentage of last year."
He said that CBR has given very big relief to income taxpayers by changing the income tax collection system from assessment base to self-assessment. Now, people submit details of their earning under Universal Self-Assessment Scheme, which is biggest relief to them.
About extension of Income Tax regulations to Fata and Pata, he said no such policy was under consideration.