Thousands file returns with no income tax

These people say they earn from agriculture and get money from abroad.

ISLAMABAD:

Twenty thousand out of 70,000 wealthy people, who were issued notices for payment of due taxes some time ago, have filed income tax returns showing levy of zero taxes, says an official of the Federal Board of Revenue (FBR).

Earlier, FBR had identified 700,000 people as potential taxpayers through data of National Database and Registration Authority (NADRA). These people are said to have residences in posh areas, hold foreign currency accounts and frequently travel abroad, but pay no income tax. Of these, over 70,000 were issued notices about a month ago, asking them to file returns and clear their tax liabilities.

The FBR official said the 20,000 potential taxpayers declared such sources of income on which tax was not levied. Elaborating, he said most of the targeted people pointed out that they derived their income from agriculture and received money from relatives abroad. In case of agriculture income, they said they were paying taxes to the provincial government wherever it was necessary.

According to the official, though the FBR notices to over 70,000 people have brought a small amount in income tax along with returns, the move will help the government widen the tax base, which will increase tax revenues in the future.

The official said FBR would scrutinise and cross-check the data provided by these people to determine how many of them had provided correct information. “There is a need for an extensive and transparent audit of the tax returns filed by these people,” he added.



Published in The Express Tribune, June 26^th, 2011.