ISLAMABAD: The Federal Board of Revenue (FBR) has decided to establish directorate for the broadening of the tax base (BTB) in order to include new taxpayers into the system.
Officials told this scribe that the high ups of tax department have completed its study to establish a new directorate. With the establishment of the new directorate, 0.5 million new taxpayers will be included in the system.
The BTB directorate will have its own offices around the country and Director General (DG) level officer will lead the office. Currently, Tenvir Malik, a grade 21 officer of Inland Revenue Service is seeing the matters of BTB in headquarter.
The tax department has different directorates including Directorate General of Transit Trade, withholding taxes and Directorate General of Post Clearance Audit but these are functioning under the tax department with the liaison of other wings however sources stated that BTB will have an independent wing.
“We will induct relevant field holders who will facilitate the taxpayers in every way”, FBR official added.
It is necessary to mention here that FBR chairman last month inaugurated BTB Islamabad Commissioner’s office. The purpose of establishing this office is to broaden the tax base and bring new taxpayers at par with the developed economies.
The tax department is struggling hard to include new taxpayers into the system as on December 15, 2017, 1.07 million income tax returns had been filed. FBR has 3.1 million electricity consumers’ data but due to corruption matters, people are not coming into the tax system.
Pakistan Tax Bar Association President Abdul Qadir Memon while talking to Pakistan Today stated that FBR has to work on automation system because people file the return but their system cannot update it.
Instead of establishing new directorate, tax department should improve the performance of current directorate, he added.
It is mention worthy that in a speech on the floor of the house Prime Minister Shahid Khaqan Abbasi maintained that collection of taxes is very close to his heart.
Subsequently, the high ups of FBR have prepared a strategy to enhance the tax base focus on those people who frequently travel abroad, have luxury cars, electricity and gas connection holders.
