LAHORE: The Federal Board of Revenue’s distinction between corporate and non-corporate taxpayers has resulted in growth of revenue generation, which is the vision of current Chairman FBR Dr. Muhammad Irshad.
This was stated by Withholding Taxes Zone, Regional Taxes Office-II, Lahore Assistant Commissioner Amir Yasin, while giving an exclusive interview to Customs Today.
Talking about the revamping of taxation system and creation of corporate and non-corporate field formations in Pakistan, he said it has increased the number of filers of tax declaration from 1.2 million in yesteryear to 1.4 million in current year with a rise in non-corporate taxpayers. Here non-corporate taxpayers mean taxpayers who are not companies and corporate bodies, i.e. individuals and associations of persons.
He said that in his own jurisdiction, which comprises of non-corporate contractors, builders, developers and consultants, the number of withholding agents has crossed the strength of five hundred. On creation of this non-corporate zone, the number of withholding agents was less than one hundred out of eleven thousands taxpayers’ strength. This incremental change is due to separation of non-corporate taxpayers from corporate taxpayers. In the yesterdays, non-corporate taxpayers were being ignored due to a focus on corporate taxpayers. Now the non-corporate taxpayers have come under the scrutiny and hence the application of withholding taxes’ provisions has been improved in non-corporate sector. Along with this, the untiring efforts of the team of withholding taxes’ zone and guidance of regional leadership, Khawaja Adnan Zaheer, Chief Commissioner, has given the region more than 20% growth from the collection of withholding taxes despite a low growth at national level.
To a question regarding the notices for collection of tax issued to different government institutions and corporate bodies, the assistant commissioner said he is also monitoring different withholding taxes’ sections along with the scrutiny of tax payments by withholding agents of his jurisdiction. The mentioned notices are sent for real time monitor collection and deposition of tax regarding the sections assigned to him i.e. 7C, 7D, 151, 231A, 231AA and 236A for collection of tax from builders, developers, lenders, profit on debt, cash withdrawal, banking instruments and auction. Recently, notices are issued to Excise and Taxation Department, Rescue 1122, Mineral and Mines Department, LDA and Pakistan Super League Management for collection and payment of tax on auction/bidding of goods, properties and franchise (in the case of Pakistan Super League).
To a question regarding the protests of trade bodies on raids by the tax department on the business premises of traders and industrialists, Assistant Commissioner Amir Yasin urged the trade bodies to purge themselves of black-sheep and tax-evaders instead of cursing country’s prime taxation authority. He further said the tax-evaders are also causing problems and hardships to complaining taxpayers. If taxation complaint traders and industrialists get rid of these tax-evaders, the departmental raids will be done on business premises of tax defaulters only. “It is a bitter reality that there is not a single incident in the recent history of the country that any trade body of the country has banned or expelled a trader and industrialist due to his involvement in tax evasion. If trade bodies had done it, they would have not protested these days”, the assistant commissioner remarked.