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FBR must bring unregistered soap manufacturers into tax net

FBR must bring unregistered soap manufacturers into tax net

LAHORE: The number of unregistered soap manufacturers was increasing day by day that must be brought into the tax net to overcome the loss to national exchequer.

Talking to Customs Today, an official of the Federal Board of Revenue (FBR) said a number of factories were being run in residential areas to avoid taxes, causing a huge loss to national revenue.

He highlighted that the supply of unregistered products into the market not only hurt the revenue targets but also created hurdles for registered or taxpaying companies of the country.

He added that fewer sales of products of registered companies resulted in low income or sale ratio, and as a result, the FBR gets a small amount of tax.

The official also said that soaps and detergents with different names were being supplied in the local market. He urged the Inland Revenue Intelligence officials to conduct a research study on it to highlight tax evaders and unregistered companies.

He hoped that the FBR would generate enough revenue by focusing on such cases.

He also said many other items like foodstuff and beverages were also supplied to the local market. He suggested that the FBR should make a special team to keep an eye on products being supplied to the local market.

On the other hand, tax consultants are of the view that the government could widen the tax net by giving relaxations to the potential taxpayers.

They said that many unregistered companies usually avoid registration because of unnecessary taxes involved in the process.