PM Directs FBR to Bring Wealthy Individuals Into Tax Net

Prime Minister Shehbaz Sharif Thursday directed the Federal Board of Revenue (FBR) to bring the wealthy individuals into the tax net. During an important meeting regarding FBR’s reforms and digitization in Islamabad, the premier was informed that 4.9 million people, who can afford to pay taxes, have been identified through the use of advanced technology. The premier instructed to bring the wealthy among these 4.9 million individuals into the tax net on a priority basis and added that no additional burden should be put on the poor. The FBR officials informed that the Single Sales Tax Return system which will connect FBR with revenue authorities nationwide is being expanded. It was informed that the system has already been implemented in the telecom sector. The premier directed the application of this system to all taxpayers by October 2024. He said that a fraud of Rs. 800 billion in tax refunds was unearthed in the last four months, showing positive results of FBR’s digitization. He said that the unnecessary delay in implementing several projects regarding the reforms in FBR is regrettable. The meeting was briefed that 83,579 tax cases worth Rs. 3.2 trillion are pending in various courts and tribunals regarding. It was informed that the incumbent government has taken various steps to resolve the pending tax cases. During the last four months, 63 cases worth Rs. 44 billion have been disposed of by various courts. The meeting was also informed that 150,000 retailers have so far been registered with the traders-friendly mobile phone app since April this year. The prime minister advised to continue consultation with the retailers to make this system more efficient. He instructed to increase the number of appellate tribunals to 100 for speedy decisions of the cases. He also directed to enhance the appellate tribunals to dispose of cases regarding customs. Besides, instructions were given to prepare a dashboard to assess the performance of appellate tribunals. The PM also advised to fully digitize the Fraud Detection and Investigation Department of the FBR. He stressed the need to formulate a strategy for bringing all ongoing reform projects in FBR under a central system.