The Federal Board of Revenue (FBR) has decided to take strict enforcement measures to bring pharmaceutical industry into the tax net. Sources told Business Recorder here on Monday that the pharmaceutical sector is one of the most potential sectors for broadening the tax base and improve revenue collection.
The FBR has directed the Directors-General of Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to collect information about the pharmaceutical companies from various sources. The FBR has further asked the field formations to collect data on pharmaceutical companies from 'Pharma Guides', Pharmaceutical Association of Pakistan, business directories and information about pharmaceutical companies available in the print media. Under the enforcement strategy, this sector has been placed in the priority list for compliance.
The pharmaceutical companies are earning huge amounts of profits and their actual contribution in the tax collection would be ascertained. The information from these sources would identify all pharmaceutical manufacturers, distributors of pharmaceutical companies, and the entire chain of suppliers of drugs and medicines in the country.
Some of the leading shops engaged in selling of medicines and pharmaceutical products are paying nothing in the form of taxes despite huge turnover on daily basis. Following identification of potential taxpayers within the pharmaceutical industry, the department would start registration process of all such units operating out of the tax net. The FBR would issue notices to the unregistered companies for bringing them into the tax net and regular filing of returns by them.