THIS refers to your editorial ‘Tax challenge’ (Dec 2). There are certain critical points regarding tax revenue collection and the challenges faced by Federal Board of Revenue (FBR) that the said editorial has missed out on.

The target up to the month of November appears to be on the lower side because of adverse effect of Covid-19 pandemic on the economy.

Revenue collection in excess of what was collected in the corresponding period last fiscal speaks of FBR’s commendable performance.

Besides, the target has been surpassed despite the fact that during the current year, refunds issued were cent per cent more than what was the case last year.

This has been done in order to facilitate the business community and, hence, the national economy.

In the absence of any concrete knowledge about the effects of Covid-19 on economy in the later part of the fiscal year, it is difficult to project any expected shortfall by the year-end.

On its part, FBR is working on a number of projects to optimise revenue collection.

The number of returns filed so far is on the lower side compared to the corresponding period last year because the last date for filing of returns was extended to Dec 8 in one go, while last year it was extended thrice, and, as a matter of national trait, maximum returns are filed on the last day.

In an attempt to improve compliance, FBR has already taken a number of measures, like launched the ‘TaxRay Maloomat’ portal to enable the existing and prospective taxpayers to have access to information about their financial transactions available with the FBR.

Also, a one-page return form has been launched for small retailers, SMEs and salaried individuals.

The one-page returns in Urdu and regional languages has been introduced recently.

Notices have already been issued to approximately 70, 000 return filers paying zero tax, but information about their financial transactions to the contrary is available officially.

In the next phases, such notices to registered-but-non-filers and unregistered-but-potential-taxpayers would be issued.

As such, the identified 7.4 million potential taxpayers would be made to file their returns.

In order to increase the share of direct taxes in the national kitty, the FBR is moving fast for reduction of a number of withholding taxes and tax exemptions.

Serious efforts are being made for broadening the tax-base, and the tax laws are being simplified to make compliance easier.

Spokesperson
FBR, Islamabad

Published in Dawn, December 4th, 2020