FBR preparing tax evaders' data

LAHORE, Mar 18: Minister of State for Revenue Hammad Azhar on Monday said that through technology profiling, the Federal Board of Revenue (FBR) was preparing the largest data base of tax evaders with the cooperation of NADRA, FIA and State Bank of Pakistan to bring them into tax net.

Talking to business community here at Lahore Chamber of Commerce and Industry (LCCI), he said this profiling was in advance stage and would be completed by the end of April. He said that there would be no escape for tax evaders and there would be no need for raids by FBR. He said that raids by FBR on business premises had been suspended till March 31, 2019. He advised all those that evaded or understated income to file tax realistic returns. He said that most of the raids were conducted on the basis of data analysis of firms and individuals.

Azhar deplored that in the past FBR used to achieve tax targets by enhancing the tax rates that hurt tax compliant entrepreneurs. He said after separation of Tax planning from tax collection, the FBR officials would now have to make real efforts to achieve their targets.

He said revenue would be increased by bringing in tax evaders into tax net and checking the under filing of taxes through technology. He clarified that filing a tax return did not necessarily mean that taxes were not evaded and there was a need to scrutinize financials of taxpayers to ascertain the no evasion had occurred.

The minister assured the businessmen that after enlargement of tax base the tax rates would also be brought down to the regional level. He said indirect taxation hurt the poor; this was the reason this government desired to increase the percentage of direct taxes.

Earlier, LCCI President Almas Hyder pointed out that 99.4 percent of the entire tax revenue was deposited by the taxpaying businessmen.

The LCCI President said that government should review the laws and rules & regulations which ultimately made people to stay away from tax net.

(APP)