ISLAMABAD: Federal Board of Revenue (FBR) has informed the World Bank that the tax body has significantly reduced the number of audit selection this year.
In Audit Policy 2017, FBR selected 7.5 percent cases for audit out of the total filers.
However, in Audit Policy 2018, FBR has selected 2.3 percent of income tax cases and 2.5 percent of sales tax cases for audit out of the total filers.
Senior officials of the FBR informed the World Bank team at a meeting held at FBR headquarters.
On the subject of audit selection of cases, World Bank team was informed that FBR has carried out parametric selection of cases using new business intelligence tools.
The process has significantly reduced the number of cases selected for audit.
The World Bank team was informed about the tax reforms introduced by FBR for medium and small sized companies on Ease of Doing Business.
Abbas Ahmed Mir, Chief (BDT-IT) and Ms. Saba Ijaz, Secretary (BDT-IT) attended the meeting from FBR side.
FBR Officers briefed the World Bank team about the launch of e-payment of taxes through Alternate Delivery Channels (ADC) which came into effect since March 2018.
Through Alternative Delivery Channels, the taxpayers can now pay their taxes through ATM, internet banking or mobile banking which has saved taxpayers time and resources.
FBR team also apprised World Bank team on the reduction of income tax rate from 25 percent in tax year 2018 to 24 percent in tax year 2019 for the small companies.
Income tax rate will keep on reducing by 1 percent every year till 2023 when it will be 20 percent.
FBR officers also clarified the Sales Tax Law relating to capital asset purchase and adjustment of input tax under section 8B of Sales Tax Act 1990.