Officers demand 'speed money' to process sales tax refunds: FBR chief

Langrial says only 12 people in Pakistan disclosed assets beyond Rs10b

KARACHI:

Of all people, the Federal Board of Revenue chairman acknowledged what every other sales tax filer complains about: FBR officers demand 'speed money' to process sales tax refunds.

Federal Board of Revenue (FBR) Chairman Rashid Mehmood Langrial in a bold disclosure said that the officers concerned at the board "take money on refunds."

Addressing the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday, he quoted a former FBR officer as saying that they take a lesser amount on legitimate refunds and hefty sums on fake or dubious refunds.

Chairman FBR while talking to the media said that only 12 people in Pakistan have disclosed their assets at beyond Rs10 billion. Tax culture is weak in the country. Most of the people do not file returns and those who do, lie about it.

The top taxman warned of various measures being implemented for non-filers. Langrial said that non-filers will only be able to buy a three-year-old car of less than 1,300cc and a house worth less than Rs10 million and will not be able to invest in mutual funds.

He said that amnesty schemes were of no use in the world. Amnesty means to forgive the sins of the last five years, he said adding it only fosters more tax avoidance.

Citing an example of untaxed incomes the FBR chief said that during random selections, a person's data showed Rs10 billion in cash, although he had no house, assets or any declared source of income. "We are living in a world of complete lies," Langria said asserting tax reforms as well as moral education of the citizens.

FBR chairman said that anti-smuggling is our top priority and Customs Intelligence has been directed to conduct operations at entry and exit points of Karachi for a month. He said that many businesses in the country are not registered and now we will bring such businesses under the law. Unregistered businesses will be sealed and chambers of commerce will be consulted on these issues. He explained that special action will be taken on businesses with annual sales of more than Rs20 million.

Addressing the industrial and business community of the country, the FBR chief said that there were 0.3 million industrial connections for gas and electricity in the country, but not all were registered with the tax authorities.