The Federal Board of Revenue (FBR) has started an exercise to ascertain the cumulative value of wealth in Pakistan for devising a policy for bringing potential sectors in the tax net during the coming budget (2008-2009).
Sources told Business Recorder on Tuesday that the idea behind the exercise is to determine substantial increase in wealth during the last five years. The collection of information from government departments, land registrars and other sources is an extremely difficult task.
In certain situations, taxpayer has to file wealth statements, but most of the landlords and influential people are not filing them. For example, a person having annual income of Rs 5 lakh has to file wealth statement, but many people are showing low income and not filing income tax returns. Many people declare annual income of Rs 2-3 lakh to avoid filing of wealth statement. The non-filers of returns are also not bound to file wealth statements.
Due to absence of data, it would be an uphill task to collect data on wealth across the country. However, the FBR would be in a position to have some idea on wealth accumulated by the landlords and proper owners.
Sources said that the FBR would approach the Securities and Exchange Commission of Pakistan (SECP) and the land registrars for collecting data on total market capitalisation of shares and property data, respectively, during the last five years.
The idea is to get figures on total market capitalisation of shares and increase in property value during the last five years. It is yet not clear that whether the FBR has any intension to restore wealth tax or levy some other form of capital gain tax or capital value tax on rich class in the coming budget (2008-2009).