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ISLAMABAD: In an effort to widen the tax base, the Federal Board of Revenue (FBR) has issued notices to 295,000 people who have not filed income tax returns. Another 300,000 notices are expected to be issued shortly.
The issue was discussed at the seventh meeting of the Tax Reforms Core Group held here on Friday in the FBR Headquarters, presided over by Finance Minister Dr Abdul Hafeez Sheikh.
The meeting discussed progress in the wake of FBR reorganisation, finalisation of administrative measures agreed with World Bank in April 2011, centralised audit, revenue collection of FBR and expanding the Outreach Programme.
The meeting was informed that under the Broadening of Tax Base concept 295,000 notices had been issued to non-filers of tax returns and Member (IR) had been directed to ensure that notices to the remaining 300,000 non-tax returns filers were issued on a priority basis.
The meeting included an update on redrafting the treatment of five zero- rated export sectors, tax incentives scheme as well as proposals of stamps on cigarette packs to help identify/smuggled/non-excise-paid cigarette packs and enforcement of the Capital Gains Tax.
The finance minister reviewed the revenue performance of FBR and said that a follow-up meeting of TRCG would be held after two weeks to have a complete analysis of taxpayers' data and to discuss strategy to pursue non-taxpayers.
TRCG Member Muhammad Ali would also give a presentation on Capital Gains Tax in a follow-up meeting along with relevant data and strategy for enforcement of the CGT based on meetings with the Member (IR).
The Policy Wing of FBR was asked to give details of revenue-based analysis of the amount of revenue generated due to exclusive efforts of FBR, and those due to policy decisions and due to exchange rate difference. The expected revenue collection during the period of January to June 2012 was also reviewed.
The minister directed that in the next meeting, preliminary budget proposals and efficiency enhancement measures would also be taken up for discussion.
The FBR officials gave a presentation on the Outreach and Awareness programmes with a way forward strategy for expanding outreach programmes. Proposals were also put forward by members of TRCG on various policy issues.
The meeting was attended by FBR Chairman Salman Siddique, Deputy Chairman of Planning Commission Dr Nadeem ul Haq, Members (TRCG) Abdullah Yusuf, Habib Fakhruddin, Arshad Zuberi, Bashir Ali Mohammad, Ali Jameel, Muhammad Arshad Chaudhry, Ashfaq Tola, SECP chairman Muhammad Ali, along with core team members of FBR.
