The Federal Board of Revenue (FBR), in a last-ditch effort, has been able to register only 2901 persons with the sales tax department in the first quarter (July-September) of 2010-11 as compared to 11,976 identified taxpayers, reflecting highest level of non-compliance when General Sales Tax (GST) Bill 2010 has been presented in Parliament.
Sources told Business Recorder here on Saturday that the FBR has prepared a report (dated November 10, 2010) on registration of new sales taxpayers across the country during the current fiscal year. Despite the fact that the GST Bill 2010 has been presented in the Parliament to broaden the tax base, the FBR's performance to discover new sales taxpayers is extremely disappointing. Out of 11,976 new taxpayers, only 285 new taxpayers have filed their sales tax returns in the second quarter of 2010-11.
The primary aim of the GST Bill 2010 is to bring new sectors into the sales tax net to ultimately increase the number of sales taxpayers. On the other hand, the report showed that total of 11,976 non-registered non-filers have been identified up to July-September, 2010, out of which only 2901 taxpayers have been brought on the sales tax registration number (STRN), while returns have reportedly been filed by 285 new taxpayers only.
Tax paid by new taxpayers is Rs 210.47 million. From the following figures it is evident that performance of following RTOs remained unsatisfactory as these RTOs failed to get sizeable return filed and resultant revenue generated from the new taxpayers registered. Furthermore, RTOs including Quetta, Bahawalpur, Sargodha, Gujranwala, Lahore-II, Multan, Rawalpindi and Sialkot have not identified even a single non-registered non-filer.
FBR data showed that in the jurisdiction of RTO Karachi, the number of new taxpayers registered is 1032 and zero number of returns received from new taxpayers. RTO Quetta, number of new taxpayers registered are 61 and number of returns received from new taxpayers is zero; RTO Faisalabad number of new taxpayers registered are 1271 and number of returns received from new taxpayers 110; RTO Gujranwala number of new taxpayers registered are 56 and number of returns received from new taxpayers are 20; RTO Islamabad number of new taxpayers registered are 262 and number of returns received from new taxpayers, are zero; and in the jurisdiction of RTO Peshawar the number of new taxpayers registered are 86 and number of returns received from new taxpayers are 31, FBR report said. The FBR has to take strict enforcement actions for increasing the tax base under the RGST regime to be introduced, sources said.