LAHORE: State Minister for Revenue Hammad Azhar has declared a crackdown on hundi/ hawala operators in the country.
Addressing a press conference here on Sunday, he claimed achieving 30 per cent increase in tax returns filling in the first year of the Pakistan Tehreek-e-Insaf (PTI) government.
He made it clear that the government did not pressurise the Federal Board of Revenue (FBR) in Aleema Khan case, in which Supreme Court (SC) had sought proofs of assets, and later asked her to deposit the due taxes.
“We did not get any instructions from any quarters of the PTI. The FBR and the ministry were very concerned about it that no irregularities should be committed in that case,” Hammad said.
The state minister said that last year 1,121,533 tax returns were filed on the same date, which has gone up by 30 per cent, to 1,418,402 this year. The increase is mainly due to reforms, introduced by the government in the FBR, while further reforms are under way which will ultimately increase the tax base in Pakistan, he added.
Additionally, the state minister announced the extension of one day in tax returns filing date to Dec 17, 2018 (today), as last date fell on non-working day, which was legally increased by one day. He said that action against the non-filers and tax evaders was initiated under which 20,000 people were identified, who purchased Rs10 million and above worth vehicles and Rs20 million and above property during the last year, but did not file returns.
He said that in the past, ministers and the government officials were not available to trade bodies for months, while this culture has been changed in the PTI government which takes them on board and consults in all related issues.
To a question, he said the people availed tax amnesty in the past have constitutional cover and the FBR would not open their cases for audit.
About hundi and hawala, the minister said the government had already gathered the data and a massive crackdown on the people involved in this heinous financial crime was on the cards. “We have chalked out crackdown modalities and people involved in it would be dealt with stern hands,” he said while appealing to overseas Pakistanis to remit their hard-earned income through legal channels.
Responding to a question about difference of cost and exchange rates between official channels and hawala and hundi, which encourage overseas Pakistanis to avail illegal channel to remit their money, Hammad admitted the fact and said that the difference should be minimised. “I believed the difference should be minimised or people get more while sending money from legal channels, instead of illegal channels,” he said. Furthermore, the government has been chalking out an incentive programme for the overseas Pakistanis to encourage them to send remittances through legal channels.
The state minister also announced amendments to the tax laws and policy reforms in the next budget. Additionally, all tax laws would be available in Urdu language, besides easy tax return form would be available in Urdu language too in the next year. Furthermore, tax filer could file their tax returns through mobile application too in the next year, he added.
He said the PTI government had an objective to make the FBR a tax-friendly organisation, while culture of harassment to the taxpayers would be end through reforms. Under the reforms, the field offices infrastructure of the FBR would be improved along with better communication mechanism between field offices and the FBR headquarters. The prime minister of Pakistan was already briefed on these reforms, he added.
The state minister also announced that complex issues of taxation between provinces and the FBR would be taken to the Council of Common Interests (CCI) for amicably redressing them.
About his own tax filing, Hammad Azhar said that he deposited more than Rs10 million tax while tax directory of the parliamentarians would be published within a week, which would be available on the FBR website. The PTI wants to keep everything transparent and publishing the tax directory is a step towards the transparency, he added.
To a query, the state minister said that some politicians were avoiding accountability and talking about early election. He made it clear that the PTI would complete its five-year term and its reforms agenda would be completed by then.
On a question of barring the overseas Pakistani to bring only one mobile phone as gift while returning back to home while government claiming to give incentives to them, the state minister said that last year Pakistan mobile phone market size worth was Rs190 billion, out of which only Rs80 billion were imported through legal channels, while Rs110 billion worth mobile phone was smuggled. “We take all stakeholders on board while making this policy and eyed to tax $1.5 billion worth imported phone market. Further, the government is considering a number of other options including reducing the duty rate of second phone brought by overseas Pakistani besides many other option too on this issue,” he added.