FBR lucky draw scheme delayed

Ministry of law and justice fails to vet rules on time.

ISLAMABAD: The ministry of law and justice has been unable to vet the rules for the Federal Board of Revenue’s lucky draw scheme in time, which means that the latter will not be able to launch the scheme from January 1 onwards. The lucky draw scheme was meant to curb tax evasion in hotel and restaurant sector.

FBR sources informed that the sales tax lucky draw scheme worth Rs30.6 million was due for introduction from the beginning of next year but its rules had to be vetted by the law ministry.

Sources said that the FBR wanted to start a drive to inform consumers about the scheme before its launch but the timeline for its implementation remains uncertain. The scheme was supposed to last from January 1 to June 30 of next year.

Under the lucky draw scheme, participants will be eligible for awards between Rs5,000 and Rs100,000 every month. Consumers can participate by using their mobile phones to SMS details of restaurants’ and hotels’ invoices or bills directly to Pakistan Revenue Automation Limited (Pral).

They will, however, have to send in the receipts later by mail. Consumers can also participate by collecting these bills and sending them to the FBR before the end of each month.

The FBR claims that this scheme is designed to broaden the tax net, encourage the hotel and restaurant sector to pay their taxes and curb tax evasion in these sectors.

Published in The Express Tribune, December 24^th, 2010.