Federal Board of Revenue Chairman Salman Siddiq categorically said on Monday that a make or break situation has emerged in case of meeting revenue collection target and documentation of unregistered elite class as President Asif Ali Zardari has assured him that if anybody uses his name to influence tax authorities, pay no heed.
During the post-budget press conference at the FBR Headquarters, Salman Siddiq caught the media by surprise when he said any kind of pressure would not be tolerated during the documentation drive. "It is a make or break situation. I have clearly issued instructions to the field formations that do not listen to anyone, who try to pressurise the tax officials. They should immediately report to me about persons, who try to influence, but proceed for recovery and documentation. I will talk to high ups, who have already assured me that if some one uses their names to influence tax authorities, there is no need to listen to him", FBR Chairman stated. He said that the country could not afford revenue leakages any more. President has himself asked FBR not to accept any "Sifarish" even when his name is used by anyone.
He stated that the pressures have started coming after sending notices to 0.7 million tax defaulters but we have got assurances from top that no need to listen to anyone and move ahead by fulfilling the assigned task. I did not know who is in the list of 0.7 million non filers and I cannot disclose their names because law of the land bars me in this regard," Salman Siddique added.
Explaining the legal position on making public the income tax returns of the public figures like President, Prime minister or any other person, Chairman FBR categorically said that law doesn't permit to do so. The donors have observed Pakistanis were talented people who demonstrated their abilities by developing nuclear program but why they could not establish a fair and equitable taxation system in line with the country's pressing requirements. So there is no other way out but we have to come up with answers as the country cannot afford fiscal slippage that will have far reaching impacts.
Responding to a question, FBR Chairman said that the committee constituted by Council of common Interest that comprises Center's and four provinces reps was going to meet today (Wednesday) to finalise modalities for implementing Agriculture Income Tax (AIT) in provinces in an effective manner from the next budget.
To a question on Gross Asset Tax (GAT), he said that this idea was floated by World Bank consultant on tax reform programme Silvani with revenue estimates of Rs 10 billion potential but the Law Division in its view opined that the federal government could not impose GAT on immovable assets. He lauded the Supreme Court of Pakistan by taking a historic decision under which the apex court excluded withholding agents from the list of taxpayers where cases of over five years could not be opened for audit purposes.