Central Board of Revenue (CBR) Chairman Abdullah Yusuf has said that neither any action is being taken against tax defaulters nor the federal government has asked CBR for preparation of any list in this regard.
Talking to newsmen after addressing the income tax officers here on Saturday, he categorically denied a report, repeatedly aired by a private TV channel that the government had asked CBR to submit a list of tax defaulters. He, however, pointed out that CBR has detected various deficiencies in sales tax audit of sugar mills, and action was being taken against the delinquents.
In reply to a question about levying income tax on agriculture sector, he said that it was a provincial subject and to bring it under the federal tax net a constitutional amendment was required from the parliament with a two-thirds majority. "However, we want this sector to be taxed as, despite provincial levies on it, there is still a revenue gap."
About the issue relating to under-invoicing, with China, he said that CBR was pursuing the matter with Chinese Customs, and it had also achieved some success in this regard. "We have also interacted with them (Chinese Customs), with particular reference of Sust border. This is a problem area, which could better be tackled through a technological change," he said.
Commenting on media reports regarding imposition of new tax on power consumers to cover line losses, he said there was no such thing in his knowledge.
Giving details of revenue collection, he said in the first four months of the current financial year, CBR had managed to collect Rs 239 billion, which is 18 percent higher as compared to same period of last year. "At present, we are slightly above the target and, if overall economic growth continues with its present pace, we would be able to achieve the target."
Regarding the ongoing reforms in the CBR, he said that the government was committed to transform the entire taxation programme. "To achieve this goal we are pursuing a tax policy aimed at simplifying procedures and introduction of automation to improve the revenue position, enhance tax base and tax-to-GDP ratio. Under the administrative reforms, the government is committed to bringing on board 12 RTOs this year. Earlier, two LTUs, at Karachi and Lahore, were established where three internal taxes had been brought at one place. Similarly, five MTUs are also functioning successfully," he said.
He said out that CARE system has been introduced in Customs department which has curtailed the period of clearance of goods from 12-13 days to only four days. Answering a question about possibility of downsizing, he said that no such thing would be done forcibly.
Earlier, the CBR chief witnessed a demonstration of Tax Management System (TMS), a software developed for feeding taxpayers' profile with all relevant data. The system is in place for last two months and is working successfully.
Later, a private TV channel quoted the CBR chief as saying that after the completion of reform process in CBR, action would be taken against tax defaulters.