Karachi, November 28, 2024 – The Pakistan Tax Bar Association (PTBA) has called on the Federal Board of Revenue (FBR) to share updates on the progress made following its initiatives for documenting the economy and enhancing the tax system’s productivity through digital transformation.
In a letter addressed to FBR Chairman Rashid Mahmood Langrial, PTBA President Anwar Kashif Mumtaz commended the FBR’s steps toward digital transformation. He emphasized the importance of transparency in these initiatives, stating, “We would appreciate it if you could kindly share the progress on the following areas of concern, which are crucial for the documentation of the economy and the productivity of the tax system.”
The PTBA noted that the FBR has legitimized the category of non-filers by imposing higher tax deduction rates under various provisions of the Income Tax Ordinance, 2001. FBR officers have significant information on non-filers, collected during audits, monitoring of withholding taxes, and further tax paid under the Sales Tax Act, 1990. This includes taxes deducted under Sections 236G and 236H of the Income Tax Ordinance. The PTBA requested the FBR to provide data on non-filers who have transitioned to filers.
The PTBA also highlighted that over two years have passed since the implementation of the point-of-sale (POS) system to document the supply chain. It inquired about the number of POS installations across Pakistan and the impact of this initiative on tax revenue collected through the real-time invoice mechanism.
Additionally, the PTBA expressed concern over fraudulent refund and input claims by taxpayers, which the FBR frequently highlights in the media. It requested the FBR to publish data on registered FIRs, amounts of tax evaded, and actions taken against offenders.
The PTBA raised concerns about ongoing challenges taxpayers face in obtaining refunds, despite the establishment of refund zones. It urged the FBR to share statistics on refund zone performance and expedite automated refund processes, particularly for salaried individuals, to build trust between taxpayers and the FBR.
Finally, the PTBA requested clarity on the monitoring of withholding taxes through technology introduced under the Finance Act, 2022, specifically SWAPS and SWAPS agents. It sought a timeline for the implementation of this technology to enhance tax compliance and monitoring.
