Former LTBA president says every small and big business could be urged to display NTN on their premises
LAHORE: Tax base can be broadened 100 percent by carrying out income tax rules, former Lahore Tax Bar Association (LTBA) president Qari Habibur Rehman Zuberi told Customs Today.
He said every small and big business could be urged to display National Tax Number (NTN) on their premises. It could also be made mandatory for the SECP to receive annual details of the companies along with the NTN number, Zuberi added.
He believed that tax base could be broadened 100 percent by ensuring implementation of Section 181C of Income Tax. Zuberi said the section makes it mandatory for every businessman to display his NTN on a visible place.
“The FBR officials should come forward to ensure implementation of Section 181C in order to enhance tax base. The implementation of the section will enhance tax base and let the existing taxpayers to heave a sigh of relief,” he stressed.
He said that there were above 300 markets in Lahore, including Shah Alam, Rang Mehal, Suha Bazaar, Azam Cloth, Liberty and Ichhra. Each of these markets consists of more than 300 outlets but none of them have ever displayed their NTN number. Hefty revenue could be collected if the RTO office proactively works on it, he said.
“One bridle suit is being sold above Rs 0.1 million at these markets,” he underlined.
He said that the government could make law which could bind the SECP not to receive annual details of accounts of any company without the NTN number.
He also said big housing schemes were conducting billions of rupees business every year. He said that the government and FBR must bind the property dealers to deposit a certain percentage to the national kitty on every transfer, adding that these property dealers should also display their NTN numbers.
Zuberi said that smuggling was inflicting heavy losses to the national exchequer. The customs authorities must improve their vigilance on the carriers who provide the traders the smuggled goods at cheap prices.
“The practice is tantamount to discourage the real businessmen who pay customs duty and other taxes on their imports and exports,” the former LTBA president said.
Talking about a National Bank of Pakistan branch at the Lahore Regional Tax Office, Zubari said that the RTO has been lacking the facility due to which taxpayers faced extreme hardships.
“PRAL and National Bank have failed to install the bank branch despite the fact that building has been made available last year with the efforts of the LTBA,” he informed, adding that the Lahore RTO was one of the major RTOs and unavailability of bank branch on the premises was hindering smooth functioning of the RTO in respect of revenue collection.