KARACHI: As major hospitals in the city started receiving notices from the Federal Board of Revenue through which it sought details of the income of their doctors and surgeons, the Pakistan Medical Association (PMA) has said it supports every move that can strengthen the country’s economy.

The FBR wanted income details of the doctors and surgeons “having thriving practice but not paying taxes on their income” so that it could cross-match the details provided by the hospitals with the withholding statements of health professionals.

The move by the city FBR authorities came a couple of days after officials in Islamabad sent a notification to the commissioner inland revenue in Karachi with names of 30 private and public hospitals asking them to collect data of all health practitioners working in these facilities so their provided details would be “cross-matched” with the claims they made while filing withholding statements.

“We have received a notice from the FBR which requires the names, CNIC number and other relevant details associated with our hospital,” said a senior official at a major private hospital.

A health official says the FBR plan should not become a source of harassment for those already paying taxes

“We have a panel of more than 45 doctors associated with our institution one way or the other. Some of them offer only consultancy and some are regular employees. However, we are bound to follow the directives and obviously will cooperate with the FBR,” he said. The PMA says a large number of doctors and surgeons were already paying taxes and the body of health professionals supported every step that may strengthen the country’s economy.

‘No harm in sending notices’

“We think there is no harm in sending notices to the people for justified taxes,” said PMA secretary general Dr Qaiser Sajjad. “We also encourage doctors and other health practitioners to pay due taxes and contribute to the national economy.”

However, he said: “But there are some other issues as well which need to be sorted out. I personally know some professionals who pay taxes but don’t file returns and are not even aware of its importance. So people should be encouraged and educated to follow rules to avoid any undesired situation.”

A senior Sindh health official said that he was aware of the FBR move but since it was a federal subject and the individuals were addressed for their tax affairs, the provincial government had no role in the issue.

He said that the move would be helpful to bring doctors, surgeons and other health professionals into the tax net but it should “not become a source of harassment for those already paying taxes”.

While elaborating on the reasons behind the move, the FBR notification referred to a questionable practice by some of the health professionals which led to the decision. The FBR hinted at tax evasion by some of the doctors and surgeons despite “having thriving practice in Karachi”.

“During the task of identifying new taxpayers, it transpired that a large number of physicians and surgeons are registered with the Pakistan Medical and Dental Council and having thriving practice in Karachi but are not paying taxes on their income,” said the FBR notification. “In order to find out new taxpayers, this office has sent notices under Section 176 to the following [names of 30 hospitals] for providing information about the doctors practicing there, their income and other related matters.”

FBR chairman Shabbar Zaidi had said that the notices were issued to document all professions and sectors.

Published in Dawn, August 4th, 2019