No FBR notices after July 1, Tarin assures businesses

Published June 4, 2021
Only four to five per cent of the cases will be sent for audit, which will not be done by the FBR, but by a third party. — DawnNewsTV/File
Only four to five per cent of the cases will be sent for audit, which will not be done by the FBR, but by a third party. — DawnNewsTV/File

KARACHI: Finance and Revenue Minister Shaukat Tarin has assured businessmen that no notices will be issued by the Federal Board of Revenue (FBR) from July 1 as the taxpayers will be able to carry out self-assessment whereas only 4 to 5 per cent of the cases will be sent for audit which will not be done by FBR but by the third party.

“I want to remove harassment by FBR. Although there are good people at FBR but there are also some troublemakers. Hence, we have agreed upon Universal Tax Self-Assessment and the audits by third party only,” he added while speaking at an online meeting with BMG leadership and office-bearers of the Karachi Chamber of Commerce and Industry (KCCI) on Thursday.

Mr Tarin warned that if any wrongdoing was found after the audit by third party, it will result in initiation of investigation and punitive action. “In this regard, we have created a section to review all the bills, number of deposits and travel history etc of individuals and if any person is found liable to pay taxes but is a defaulter, such cases will be sent to third-party auditors to prove tax default and if proven, these defaulters will be put behind the bars,” he said, adding that laws will be devised to put such persons behind bars responsible for willful default.

The government is also focused on rationalising the turnover tax in order to make some sense as it varies in numerous cases, he said.

Three-year Rs900bn Karachi package being finalised

The minister also agreed that when 3pc penalty was being charged in case of unregistered persons, the CNIC condition should not be there. Hence, the minister directed FBR to look into this matter and stop demanding CNIC. “A call centre will also be established at FBR in which complaints can be lodged which I will personally review on a daily basis to ensure accountability at the FBR,” he added.

On dilapidated infrastructure of Karachi, Mr Tarin said a three-year package of Rs900 billion has been allocated under Public Sector Development Programme (PSDP) for Karachi which would be finalised by the PM. “During discussions on this allocation at a meeting which will be presided over by the Prime Minister, I will definitely raise business community’s concerns and I will be your promoter,” he assured businessmen.

He said that the government was trying its best to facilitate the SMEs and, in this regard, the SMEs falling under the bracket of Rs2 million will be provided ‘clean credit’ facility with no security. For this purpose, the government would be providing huge amount of funds to banks at 8pc which would be given to SMEs at 9pc while credit insurance would be provided by the government.

Published in Dawn, June 4th, 2021

Opinion

Avoid Modi’s nationalist turf
Updated 19 Oct 2021

Avoid Modi’s nationalist turf

It remains the only party with a presence in every Indian state and makes it best equipped to effect the required radical change.
Back to the Fund
Updated 20 Oct 2021

Back to the Fund

The main IMF conditions have failed to deliver sustainable growth or even fiscal or external deficit reduction over four decades.
The lamp of guidance
Updated 19 Oct 2021

The lamp of guidance

Those seeking to learn from his example must follow the moral precepts he gave otherwise it is half-hearted devotion at most.

Editorial

Opposition’s chance?
Updated 19 Oct 2021

Opposition’s chance?

What the opposition can do is take advantage of the cleavage between PTI and the establishment, perhaps widen it and leverage it.
Evading tax laws
Updated 20 Oct 2021

Evading tax laws

Challenge of tax compliance can't be dealt with without directly taxing incomes irrespective of source and punishing tax evaders.
19 Oct 2021

KCR delays

AS political and bureaucratic stakeholders drag their feet over reviving the Karachi Circular Railway, residents of...
Financial troubles
Updated 18 Oct 2021

Financial troubles

Growing trade gap is fuelling the current account deficit and bringing the already meagre foreign exchange reserves under stress.
18 Oct 2021

Complaint portal

IN a ruling on Thursday, the Mingora bench of the Peshawar High Court held that the Prime Minister’s Performance...
18 Oct 2021

Capital’s master plan

IT is encouraging that on Thursday, the restructured commission formed by the federal cabinet to revise ...