Tax dodgers risk cancellation of NICs, passports as revenue collectors look to tighten screws
In its latest effort to broaden the tax base, the Federal Board of Revenue (FBR) has submitted two tax amnesty schemes to the finance ministry for approval.
However, there is a catch this time for non-participants: those who fail to avail this opportunity of obtaining clean slates and joining the tax net, face the risk of their National Identity Cards (NICs) and passports getting invalidated and their bank accounts being frozen.
Briefing the Senate Standing Committee on Finance, chaired by Senator Nasreen Jalil, FBR Senior Member Inland Revenue Service Asrar Rauf said delinquent taxpayers would be able to benefit from these two schemes by December 31 this year, if the finance ministry approved them.
“If the people do not avail these schemes, they may face cancellation of their National Identity Cards (NICs) and passports, and their bank accounts may be frozen,” Rauf said, adding that their names would also be placed on the defaulters’ list.
The FBR scheme, which is being put forward as an opportunity to encourage non-taxpayers to pay their due tax, is expected to bring a huge number of people into the tax net with the expected revenue estimated at Rs196 billion.
Furthermore, Rauf informed the committee that tax authorities had already identified 1.78 million families across the country involved in frequent foreign travels, spending huge amounts on their utilities and other functions. He said the amnesty schemes would allow such families to legalise their hidden assets after paying Rs40,000 and registering as taxpayers.
Oil price revisions
FBR officials also claimed that weekly oil price revisions had resulted in loss of revenue to the national exchequer.
“The government has lost revenue worth Rs7 billion due to the weekly review of oil prices,” an FBR official told the committee members who strongly opposed the weekly price revision of oil products, and recommended switching back to setting prices on a monthly basis.
Diamer-Bhasha dam
Meanwhile, the Economic Affairs Division (EAD) officials informed the parliamentary committee that it had failed to arrange financing for the $12 billion Diamer-Bhasha dam.
“The World Bank says that investment for Diamer-Bhasha dam is at risk due to the government of Pakistan’s failure to arrange funds for the dam,” an EAD official said.
However, officials said the US had committed approximately $220 million for the dam, adding that even though the Asian Development Bank (ADB) had never pledged any money for the project, there are estimates that ADB may extend a loan of $3 to 4 billion, if it approved funding for the project.
PR, NTDC loans
Meanwhile, top EAD officials also revealed that Pakistan Railways (PR) and National Transmission Dispatch Company (NTDC) had bypassed EAD and violated the rules of business by signing loan agreements with China amounting to $817.60 million for four projects.
The parliamentary panel sought a detailed briefing from PR, NTDC and the Planning Commission to decide if the case would be referred to the National Accountability Bureau.
Published in The Express Tribune, October 4th, 2012.
COMMENTS (19)
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23,000 staff (including 1100 income tax officers/commissioners etc)is employed in FBR and only 5,75,000 business income tax returns are filed. Wah FBR wah........
@Nadir: Get a debt moratorium then. For defense spending utilize our own resources.
@Cobra Commander: Corrupt made the tax laws. There are other ways to fund public finance if we paid attention in our economic lectures.
FBR so far is just a talk only no action to show. They have always been identifying non paying tax payers. Some time 700,000 or 1.78 million. I have never heard FBR froze even seven accounts of seven rich people of PAKISTAN. (By the way their is no shortage of fifthy rich non tax paying rich people ) FBR should not only freeze their accounts, they should confiscate their prpperties and sell them in PUBLIC AUCTION to get the TAX they OWE.Pakistan is running out of time. Present federal loan is 65 billion dollars. It was forty billion 5yrs ago. If they do not do anything, Then the only choice is to go to IMF with beggar's bowl.
@Nadir: Haven't you heard that debt is money of the present system, globally. So more debt is imposed - globalization of poverty.
I have only one queation: whether the FBR has the capability to take action which it proposing. All corrupt officials from all walks are life have been gathered in FBR and one is expecting efficiency from them. We are living in foolish paradise. If you remember, our innocence Ex. Prime Minister once ordered to verify the degrees of all Government Officials, any news about its implementation????
Anything you buy has 50% or more of taxes built into the price. Roti at tandoor was Rs 1 each not long ago, it's Rs 8 each in Gulshan area - So it's an exchange of Rs (fiat currency) and naan. What do you think happened? One of the two things lost value.
Should there any limits to taxation? How do you all feel about paying & servicing circular debts?
@Yusuf: If you want such benefits then you also need to accept high 40-55% tax rates to finance such pensions, similar to scandanavian countries. Otherwise, we will go down the same problems the US and the UK and other Western European countries are facing whose pension liabilities run in the trillions of dollars. What the government should do is to offer tax incentives to encourage people to save.
@ Yusuf I agree with your recommendations. A tax payer who has payed tax for life should be rewarded when they reach old age at least. They should be allowed pension from government based on how much tax they have payed in their life time.
Nationalist Pakistanis want a large Army, go and on about nuclear weapons, and have "tears in their eyes" for young jawans, but yet wont pay taxes to fund their salaries and pensions. @Moise: Tax revenue barely covers debt payments and defence expenses
Our taxes fund the corrupt government. Stop paying taxes, say no to corruption.
There should be a law that where interest of state has been curtailed, govt reserves the right to cancel such contracts, loans or property lease (Baloch land by ME friends) etc
When A Tax Payer Retire After Reaching Age Sixty Person Must Receive Return On Tax Money Paid As Income Tax Yearly. Tax Payer In Pakistan Entitle To A Return In Retirement Equal To Government Employee, Military Services, Government Servant As Well As Public Sector Employee. The Citizen Of Pakistan Must Be Respected As A Tax Return Filers. Do Not Deny Entitlement. FBR Must Serously Consider Proposal Of A " Return," In Retirement For Those Who File Tax Return Yearly.