ISLAMABAD: The country’s tax managers are gearing up for a critical meeting with Prime Minister Imran Khan after his return from China to obtain his approval on revenue generation reforms.
As Pakistan moves towards holding talks with the International Monetary Fund (IMF) for a bailout beginning November 7th, sources shared the PM would be provided with a comprehensive briefing by the top cadre of the Federal Board of Revenue (FBR) in the coming week on suggested tax reforms, reports The News.
Also, the PM would be briefed about administrative measures to attain the desired target and raise the tax-to-GDP ratio.
During the meeting with the IMF next week, the performance of the FBR would be a key area of deliberation with the IMF, since the tax machinery has appallingly failed to widen its tax base and tax -to-GDP ratio in last few years, sources confirmed.
Also, the sources disclosed the FBR will inform the PM about the advances made in cases linked to net-worth tax evaders, who failed to file tax returns.
The sources added this practice would be intensely extended on an incessant basis to unearth major non-filers who earn large amounts of income and own high-value assets.
Moreover, the tax regulator will share a progress report with the PM on actions against tax dodgers who have acquired properties worth more than Rs20 million, purchases 1,800cc or above engine cars and received rental income of Rs10 million or more annually and still not filed their tax returns.
As per an official, the tax regulator had already commenced a tax recovery drive against major tax dodgers without any discrimination.
The tax regulator has projected Rs37 billion in tax demand from an audit of high net-worth individuals.
The anticipated revenue generation from the liquidation of court cases would earn Rs20 billion and revenue from the tobacco sector alone was forecast at Rs14 billion.
By implementing these measures, could contribute to Rs71 billion in revenue generation.
And sources have found out 373 cases as high net-worth dodgers who never cared to file tax returns. The tax regulator has compiled a list of 148 cases of non-filers who invested in properties (above Rs20 million) and luxury motor vehicles over 3,000cc in the first phase.
In phase two, the tax regulator has unearthed seventy-five tax evaders across Pakistan and the list of these people was ready, including 59 buying cases of properties having a registered value of Rs20 million or more, ten motor vehicle acquisition cases of 1,800CC or above and six rental income cases of yearly rent of Rs10 million or above.
The phase three saw the FBR identifying 220 tax evaders and finalized the list of these non-filers. It includes 29 cases linked to the acquisition of properties having a value of Rs20 million and over, 191 cases of motor vehicle acquisitions of 1800cc and above.
And under phase four, the FBR has unearthed 22 high-end plazas including two in Lahore, twelve in Islamabad and eight in Karachi.