FBR chairman warns sales tax defaulters of stern action after June 30

110,000, benefitted, Amnesty, Scheme, Shabbar, Zaidi
22 May, 2019 3:40 pm

ISLAMABAD (92 News) – Federal Board of Revenue (FBR) Chairman Shabbar Zaidi has warned sales tax defaulters of stern action if they did not clear their accounts till June 30.

Addressing a press conference on Wednesday, he asked the defaulters to pay two percent tax to get them registered under the Asset Declaration Scheme by June this year.

He also announced to introduce a tax system on the consumption of gas and electricity. “There are 341,000 electricity and 7,000 gas industrial consumers, but only 38,000 industrial units are registered in sales tax.”

Shabbar Zaidi said that the government wants to facilitate the business community while enhancing the tax net.

FBR Chairman Shabbar Zaidi said that they would first bring the industrial consumers and then commercial in the tax net. “No change has been made in one-day notice to freeze an account,” he declared.

He said that all industrial consumers of gas and electricity will have to be registered in the amnesty scheme. “Legislation will be made after July 1,” he said.

The FBR chairman said that people’s accounts are being frozen without serving them notice. “In Pakistan, 100,000 companies are registered with Securities and Exchange Commission of Pakistan (SECP). There are only 50,000 companies are filers,” he said, adding that he had asked the SECP chairman to expel non-filer companies.

No ambiguity in tax amnesty scheme: Shabbar Zaidi

On May 18, Federal Board of Revenue (FBR) Chairman Shabbar Zaidi had said that there was no ambiguity in the tax amnesty scheme which would not be changed.

Addressing traders at Karachi Chamber of Commerce on Saturday, he said that relief can be given on some raw material, which cannot be exempted from tax.

He said that smuggling is going on other than the Afghan transit trade which is a political issue. “I have stopped the officers from freezing accounts in order to get tax,” he said, adding that he had asked the officers to receive the tax after serving 24-hour notice.

The FBR chairman said that their own people are responsible for smuggling, which is forbidden by religion. He said that traders will have to jointly work with the government to save the country.

He said that he had stopped the security agencies from harassing traders and FBR officers. “The dollar is soaring, while the rupee is devaluing. This matter is not related to me,” he maintained.

Shabbar Raza said that Prime Minister Imran Khan had not formed a committee regarding the foreign currency. “Detailed discussions are going on to control Hundi business,” he said.

He disclosed that over 30 percent accounts are ‘benami’ and their tax return has not been shown. “These accounts are opened in the morning and closed in the evening,” he said.

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