The implementation of capital gains tax (CGT) on share trading and real estates from next year, will enhance the government's total revenue, said Federal Board of Revenue (FBR) Chairman Abdullah Yusuf. Besides, proper implementation of capital value tax (CVT) was also under study to broaden the tax base and increase revenue collection, he said.
While inaugurating the first tax help kiosk at Park Towers here on Monday. Any change in political scenario might not hamper revenue collection of Rs 1.025 trillion target set for the current fiscal year, he said. Yusuf said that the FBR had collected Rs 108 billion in the first two months of the current fiscal year, thus achieving the target set for the period.
The FBR Chairman said that a number of retailers and wholesalers were still out of tax net, and added the FBR had prepared a new mechanism in the 2007-08 budget to ensure voluntary compliance by the retailers after payment of less amount of income tax and sales tax. He said that retailers and wholesalers were contributing 16 percent to the gross domestic product (GDP), which less than three percent.
Small traders from all the four provinces had assured the FBR that they would voluntarily file income tax returns during this month, he said. To facilitate the taxpayers, the FBR Chairman said tax help kiosks would be set up across the country, and added that the kiosks would help the taxpayers to obtain National Tax Numbers (NTN) and filing their statements.
About tax compliance by the transporters, he said that the board was negotiating with the transporters on various tax issues that would soon be resolved. He, however, advised the transporter to increase their tax liability from four percent to 12 percent, which they were paying towards the GDP. The FBR Chairman said that there was mismatch between the GDP and taxes, and added only oil and gas, banking and telecom sectors were the leading performers in revenue collection, but several other sectors did not contribute to revenue as per their existing potential.
On the occasion, Director General of Regional Tax Office (RTO), Karachi, Asrar Raouf, said that the tax help kiosks would be established across the metropolis to facilitate the taxpayers for filing their income tax statements by September 30.