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Tuesday April 23, 2024

Many lawmakers yet to file tax returns

Publication of tax directory delayed

By Umar Cheema
March 20, 2015
ISLAMABAD: As preparations for the tax directory are under way, the Federal Board of Revenue is more concerned about the lawmakers than the common citizens as the former continue to be in a defiant mood - not willing to file the tax returns despite repeated ‘requests’ by FBR.
This has delayed the publication of the tax directory that was earlier planned for March 21. Incidentally, PTI chairman Imran Khan who had given the call for civil disobedience, urging masses not to pay taxes and utility bills, later did both whereas the treasury lawmakers are ahead of others in non-compliance of the tax laws.
Chairman FBR Tariq Bajwa has written several letters to the Senate, National Assembly and provincial assemblies reminding them of their legal obligation to file tax returns but many of them are still adamant.
In a videoconference a couple of days ago, the chairman is said to have assigned the regional offices to approach the ‘honourable’ lawmakers and help them file tax returns for the tax year 2014.
“I am a lawmaker. How dared you call me,” responded a noted politician when a tax officer called him to ask when he could meet him to collect signature and financial details for submitting tax return on his behalf.
This practice of the FBR is in contrast with the treatment given to the non-VIP NTN-holders who are being served with notices and penalties are being imposed for not filing the tax returns within the prescribed time period.
Article 77 of the Constitution says: “no tax shall be levied for the purpose of Federation except by or under the authority of Act of Parliament.” While lawmakers impose tax on the masses, they don’t pay their own.
Failure to collect tax from the lawmakers is not only an indictment on FBR, it also reflects on the writ of the state that is defined as an entity empowered to impose any tax. Definition of the state can’t be better explained than the Constitution in its Article 7. It says: “The State means the Federal Government, Parliament, a Provincial Government, a Provincial Assembly, and such local or other authorities in Pakistan as are by law empowered to impose any tax or cess.”
The News has learnt on authority that about 19 non-filing lawmakers belong to Rawalpindi region alone. Included among them are three MNAs: Raja Javed Ikhlas, Malik Ihtebar Khan and Ch. Khadim Hussain.The list of 16 non-filer MPAs contains the names of Punjab labour and human rights minister Raja Ashfaq Sarwar, home minister Col (r) Shuja Khanzada, mines and minerals’ minister Sher Ali Khan, Shakeel Ahmed, Surriya Asghar, Raja Muhamamd Ali, Malik Taimoor Masood, Ijaz Khan, Raja Abdul Hanif, Ejaz Hussain Bokhari, Shahwez Khan, Muhammad Fayyaz, Zebunisa Awan, Sobia Anwar Satti, Tahseen Fawad and Zill-e-Huma.
Non-compliance of tax laws has been a chronic practice. Our detailed study found that 67% lawmakers didn’t file tax returns in 2011. Among them were those 90 members who did not even have NTN.
A follow-up study determined that 47% lawmakers declared in their election papers for the year 2013 as non-taxpayer and one in 11 MPs was without NTN. As far as the remaining 53% are concerned, claims of 25% of them as tax filer was rejected by FBR.
This followed an aggressive campaign by finance minister Ishaq Dar to bring them under tax net, declaring January 31, 2014 as the last date for registration. Even then, FBR had to conduct compulsory registration, as many were reluctant to do so. Besides, Ishaq Dar made a historic announcement of releasing tax directories of the lawmakers and other citizens who file tax returns.