Govt mulls single-page tax return form to encourage filing

KARACHI: Government is likely to direct the Federal Board of Revenue (FBR) to issue single-page return form in order to encourage income and wealth declaration from the taxpayers, officials said on Monday.

Member of Tax Reforms Commission (TRC), constituted by finance ministry to review and rationalise taxes, are expected to meet Prime Minister Shahid Khaqan Abbasi on December 13 (tomorrow).

The officials said the prime minister, in the meeting, is likely to issue directives related to single-page return form and other facilitation measures.

Member TRC Implementation Committee Masood Naqvi told The News that the commission would discuss issues related to redressal of taxpayers’ grievances “because without doing this potential taxpayers will not enroll for tax registration”.

“We advised prime minister during the last meeting that individuals should file their return on single page form, while their other details of transaction should be obtained from third party source,” Naqvi said.

FBR received tax returns of 215,000 by September-end against an estimated potential of seven million. But, the number was significantly more than around 60,000 returns filed till the same period last fiscal year.

Number of return filers surpassed 1.2 million for the tax year 2016 given the fact less than one percent of the population pays income tax and files tax returns — one of the lowest ratios in the world.

TRC has long been demanding one-page income tax return form to facilitate taxpayers and avoid harassment of the taxpayers.

TRC, in the last month’s meeting, advised the prime minister to take concrete measures to facilitate taxpayers because without facilitating the taxpayers the government would not be able to achieve results of broadening the tax base and documentation of economy.

Last week, the prime minister directed the FBR to take confidence building measures for the taxpayers.

TRC, in its report, said the FBR’s failure to collect the taxes and meet the budget targets resulted in harsh measures. “The honest taxpayers have to bear the brunt of excesses by the FBR offices and the burden of those who get away in the system.”

Member TRC said other issues, including pending litigation issues, tracing/monitoring system and compliance issues would also be discussed at the upcoming meeting with the prime minister.

He said the meeting will also discuss issues related to activation of alternative dispute resolution (ADR) in order to reduce pendency of litigation. There is need to amend rules related to ADR committee by eliminating FBR’s powers.

Over the past few years, FBR achieved enormous revenue collection numbers yet the confidence level is very low.

Another TRC member said a report on trust deficit has been submitted to the prime minister.

The TRC report said the public and businessmen always view the zeal and enthusiasm of the FBR in collecting taxes with suspicion and distrust.

“The highhandedness, maladministration, inefficiency, abusive behaviour and corrupt practices have created an atmosphere of distrust between the taxpayers and the state,” the report added.