ISLAMABAD: The Federal Board of Revenue has generated tax demands of Rs2.6 trillion from conducting audits of 18 major revenue spinner sectors, out of which it raised tax demand of Rs650 billion...
ISLAMABAD: The Federal Board of Revenue (FBR) has generated tax demands of Rs2.6 trillion from conducting audits of 18 major revenue spinner sectors, out of which it raised tax demand of Rs650 billion only from the politically-connected sugar sector.
“We have identified 32 sectors for conducting audit and accomplished 18 sectors, including cement, sugar, fertiliser, steel, chemicals, paints, batteries, varnish and others and generated tax demands of Rs2.6 trillion, while from the sugar sector alone, the generated tax demand stands at Rs650 billion,” the top official sources in FBR confirmed to The News here on Thursday.
The official said that out of the generated tax demand of Rs2.6 trillion, the FBR won cases of Rs2 trillion at the first stage of appeals. It shows that there is some potential in generating tax demands. The generated tax demand is the highest-ever in the last seven years.
“We have implemented existing tax laws and focused on post audit of refunds, which helped the FBR stop fake or flying invoices”, said the official.
The official was of the view that the effective enforcement was resulting in revenue generation as of today there were around two dozen outlets which were asked to pay the due taxes or face shutdown. “The FBR has sealed four major bakeries and sweet shops in Faisalabad today as the message is loud and clear that whoever is earning income, he will have to pay due taxes”, said the official.
The official said filing of the general sales tax (GST) returns are not being delayed and for Income Tax, the return is uploaded and September 30 will be the deadline for filing of returns with no possibility of any extension.
“The Point of Sale (POS) software will be integrated and installed at the branded retail stores and this program will be launched soon”, said the official, adding that the government would launch Rs50 million gift schemes from next month and the amount of the gift scheme will be increased in a gradual manner.
When his attention was drawn towards technical hitches, the official replied that the POS would be integrated in phased manner and its success would depend upon awareness shown by the customers, especially women when they would press upon shopkeepers to provide them QR added validated receipts, on the basis of which they would become eligible to win prizes every month.
The official was of the view that the FBR would achieve a tax collection target of Rs6 trillion instead of envisaged tax of Rs5.829 trillion. The official quoted an example and stated that the FBR envisaged a tax collection target of Rs342 billion for the first month (July, 2021) and so far, the net collection touched Rs380 billion’s mark. The FBR had collected Rs302 billion in July last year.