FBR ‘capable’ of collecting Rs6tr in taxes

Chairman tells parliamentary panel details of Pakistanis who made large transactions to China being acquired

ISLAMABAD:

A sub-committee of the parliamentary public spending watchdog was informed on Wednesday that the Federal Board of Revenue (FBR) was capable of collecting Rs6 trillion in taxes if its system was improved.

The FBR chairman informed the sub-panel of the Public Accounts Committee that the details of Pakistanis who had made large transactions to China were being acquired. Similarly, the data of those who made such transactions to UAE, UK and Japan is also being obtained and assistance of commercial attaches in those countries will be sought for this purpose.

He was responding to queries raised by committee member MNA Khawaja Asif, who pointed out the involvement of the electronics and other mafias in major scams.

The FBR chairman said some sectors had a major share in the GDP but they were not paying enough taxes. He cited the low revenue collection from the income tax on services as an example. Asif said the FBR could collect Rs8 trillion in taxes if they existing system was improved.

The sub-committee meeting, chaired by MNA Ayaz Sadiq, reviewed the audit paras of the FBR from 2005 to 2009.

Sadiq said during the previous meeting of the panel, the law secretary and the attorney general were asked to gather details of income tax appellate tribunals from the Supreme Court registrar and submit them to the committee. He expressed his displeasure over the attorney general’s failure to comply with the directions. “There are cases involving billions of rupees pending in these tribunals. There are only nine tribunals in the country of which only two are functional,” he noted. The law ministry officials told the convener that the status of an attorney general was equal to that of a minister and he could hardly give time to the law secretary. Sadiq summoned the attorney general, the law secretary and the chairman of the tribunals to the next meeting of the committee.

On the audit paras of the PIA, the convener noted that despite the passage of 15 days, the officials of the national carrier had been unable to formulate a strategy for settling its outstanding dues.

He directed the officials of the PIA and the Civil Aviation Authority to collectively adjust the amount and submit a report within a month.

The FBR officials also informed the committee about the disputes with multinational companies pending in courts.