ISLAMABAD: The Federal Board of Revenue has decided to convene a national tax conference of Chief Commissioners of Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) on July 23, for chalking out a strategy for 2011-12 to meet the revenue collection target of Rs 1952 billion by implementing new taxation measures, enforcement of the Finance Act 2011 and documentation of the economy.
Sources told Business Recorder here on Saturday that the FBR will devise a resource mobilisation strategy for 2011-12 during fourth Chief Commissioners Conference scheduled at FBR Headquarters here on July 23, 2011. Chairman FBR Salman Siddique would chair the meeting and Chief Commissioners Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) would participate in the meeting. It is expected that they would be given broadening of tax base and quarterly, biannual and yearly tax collection targets keeping in view the target assigned by the government.
It is expected that the FBR will also share the ruling of Law and Justice Division for imposition of the Capital Gains Tax (CGT) on immovable property with the Chief Commissioners of LTUs/RTOs. The ruling says, "After amendment in Entry No 50 of Federal Legislative List through the Constitution 18th Amendment Act, 2010, the levy of tax on capital gain on the disposal of immovable property has fallen within the domain of the Parliament to legislate on the subject."
According to the agenda of the Chief Commissioners Conference, the tax managers would discuss in detail the amendment and new tax provisions introduced in tax laws through Finance Act 2011and their implementation mechanism would be sorted out for revenue realisation. The newly revised section 153 of the Income Tax Ordinance 2001 and other amended provisions of the income tax law would also be discussed in the upcoming conference.
The broadening of tax base and netting new taxpayers especially in the direct taxes side is expected to be set as priority for the new fiscal year 2011-12. The conference would review the tax collectors performance during the last fiscal year 2010-11 and a strategy for tax collection would be finalised for 2011-12 based on experiences in last fiscal year.
To bridge the gap between tax withheld and deposited in national kitty by the withholding agents of the income tax with proper application of provisions of tax laws, the conference would approved measures for strict monitoring of withholding agents of sales tax and income tax.
The conference would examine in detail the numbers of filers and non-filers of sales tax returns based on PRAL data disseminated by the Board, demand created by the tax collectors and collection made in accordance with data and pendency. A strategy for proper dealing with non-filers, short filers and nil-filers would be finalised for 2011-12.
The conference would review the total arrears stock of income tax, sales tax and federal excise duty and recommendations for reduction in arrears stock of all taxes to be agreed upon. The future status and collection mechanism of the Federal Excise Duty on Franchises would be discussed in the conference. The automation of tax machinery, Taxpayers Audit Management System would be reviewed and necessary steps to be approved for next fiscal year.
Update on cleansing of the National Tax Number (NTN) Master index to be presented in the conference and a future action plan for task completion to be agreed upon. The performance of the Centralised Registration Office (CRO) would be reviewed.
The Conference would review the performance of each LTU and RTO keeping in view the information provided to then for broadening the tax base with certain deadline and new course of action to be finalised. The conference is also expected to settle the issues of Human Resource Development, promotions, transfers and postings in LTUs and RTOs.