FBR to take strict measures for revenue collection

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KARACHI: The Federal Board of Revenue (FBR) will take harsh measures for recovery of stuck up amount by freezing bank accounts of taxpayers and approaching the federal adjuster for recovery from government departments, sources said on Wednesday. In the collectors’ conference held on February 11, headed by FBR Chairman Ali Arshad Hakeem, the customs officers recommended enforcing strict measures for materialising the outstanding revenue from the taxpayers, the sources said.

The customs officers suggested freezing of bank accounts of the taxpayers, who failed to pay their outstanding liabilities, besides the FBR should ensure recovery of arrears through the federal adjuster from government departments and corporations, including Karachi Electric Supply Company (KESC), Hyderabad Development Authority, Services and General Administration Department (S&GAD) Punjab and Sindh police, they said.

The FBR chairman has been urged for early finalisation of the tax evasion cases deferred by the revenue body of Pakistan Railways worth Rs3.137 million and Lahore Transport Company, involving Rs107.54 million.

The measures also included invoking Section 202 of the Customs Act 1969, under which the officials have the authority to recover the amount, including imposition of fines and penalties, besides imprisonment of the defaulted taxpayer.

The proposed measures also included the liquidation of securities deposited by the taxpayers as guarantee but failed to pay their liabilities.

The FBR chairman also suggested liquidation of court cases for revenue realisation, the sources said.

The customs officers advised the FBR to restore two percent per month rate of depreciation on imported used cars and redemption fine on flat rate of five percent to six percent for excess age up to one-year in used cars.

The proposed measures are meant to enhance revenue collection of the revenue body, which is facing the challenge to meet the revenue collection target during the current fiscal year.

The FBR collected a provisional amount of Rs1 trillion in the first seven months against the assigned target of Rs2.381 trillion in the fiscal year 2012-13.

The position of duty collection by Pakistan Customs is encouraging as total collection in July-January 2012-13 stood at Rs95.435 billion against Rs78.152 billion in the corresponding period last year.

The collectors’ conference was informed that Rs2.716 billion was realised through special initiatives, which included auction; recoveries; research and development detection; encashment of securities; clearance of overstayed goods; difference in weight and invoice not found and litigation cases; and finalisation of the provisional assessment, the sources said.

In the same heads, Pakistan Customs collected Rs1.667 billion in the first seven months of the last fiscal year.

The overall revenue collection position of Pakistan Customs was, however, less than expectations as it collected Rs307.19 billion in July-January 2012-13 against Rs272.81 billion in the corresponding period last year, showing an increase of 13 percent.

 

Courtesy: The News


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