FBR selects 44,000 cases for 3 major taxes

ISLAMABAD: After excluding salaried class dependent upon sole income from audit exercise, the Federal Board of Revenue (FBR) on Thursday selected around 44,000 cases for all three major taxes through computer balloting on the basis of certain parameters.

The government is also considering to amend Section 214D (automatic selection for audit) of the Income Tax law to implement a comprehensive risk-based audit in the upcoming budget, but final decision in this regard is expected at the highest level.

“This amnesty scheme is not meant to benefit any individual or specific personality, but it aims to protect our larger interest of the country. Help us to make this scheme successful by injecting $5 billion to $10 billion into the national kitty. Our economy can take off by tackling the challenge of current account deficit,” Prime Minister’s Adviser on Revenues Haroon Akhtar Khan said while addressing launching of audit exercise through computerised balloting here at the FBR headquarters on Thursday.

Talking to reporters at the end of ceremony, when inquired that why the IMF had opposed the amnesty scheme, he said that the IMF had given statement in the broader context. If amnesty scheme can become successful in Indonesia, India, Malaysia and other countries then why it should not be tested here in Pakistan.

He said that Pakistan’s sole problem was management of current account deficit and the IMF had provided $6 billion in last bailout package and if the country attracted $5 billion to $10 billion then Pakistan was poised to take off at economic front because all other macroeconomic indicators were performing well.

He said that the government excluded salaried class where dependent upon sole income of drawing salary, holding of audit once in three years and excluding presumptive taxes from the audit exercise.

Earlier in his address, he said that the government took all kind of steps to facilitate taxpayers and now time of paying back had arrived.

“For God sake, I request all businessmen to pay their taxes after announcement of amnesty on offshore foreign assets and domestic assets and reducing income tax rates significantly,” he added. After paying debt servicing and defence, nothing has been left into national kitty and the government will have to borrow to construct roads, bridges, airports and other infrastructure in order to develop the country, he maintained.

He said that he had bridged the gap to overcome trust deficit between tax machinery and taxpayers as the government introduced amnesty for both offshore and domestic assets, cut down income tax rates up to maximum 15 percent, enhanced exemption of taxable limit up to Rs1.2 million, bring down advance tax on real estate.

“We have delivered more than we made promises with the business community,” he said and added that fiscal space became minima and hardly left anything for developing the country.

“The government has delivered whatever asked for by the business community,” he said and added that it should be now paid back by paying due taxes.

For Income Tax corporate sector, the random computer balloting selected 1,499 cases, non- corporate Sector 34,515, Sales Tax corporate 1,274 cases, sales tax non-corporate 7,532 cases, Federal Excise Duty corporate 28 and FED on non-corporate 20 cases for audit purposes for tax year 2016.