ISLAMABAD: In a press conference on Friday, Chairman of the Federal Board of Revenue (FBR) Shabbar Zaidi stated that no tax has been imposed on food items such as ghee, flour, sugar and other similar items.
He stated, “Our target is to broaden the tax net. We will not take any decision that hurts our industry or trade.” Additionally, he called for the support of the media in creating awareness about tax reform and the expansion of tax legislation in Pakistan. Zaidi added, “I have spoken to the district administration of Islamabad to take strict action against those involved in market deception and tax fraud.”
Chairman Zaidi indicated that the FBR is intending to make the tax system automated, preventing too much interference by people. When asked about mobile importers, he clarified that they wanted to pay less than the actual tax rate which is why they could not come into the net.
On the topic of tax reform, Chairman Zaidi maintained that the government would refrain from taking any decision which proves to be counterproductive for the textile industry, especially because it is on the road to progress. He explained that the board is discussing two issues with the business community across Pakistan, “The board is engaging in negotiations… discussing mainly two issues including SRO 1125, related to zero-rating and the requirement of CNIC for sales tax”.
The FBR Chairman added that there was confusion regarding the issue of CNIC requirement and clarified that it was only for sales tax, and not a part of income tax law.
Shabbar Zaidi stated that the government is also committed to stopping under-invoicing for documenting the country’s economy. He urged the business community to draw limit lines surrounding proper definitions such as ‘shopkeeper’ and other such terms.
Zaidi stated, “Out of 220 million population, there were around 47,000 people registered in sales tax, however only 19,000 were paying tax. The FBR wants to introduce a fixed tax scheme for small shopkeepers and this would resolve the CNIC issue”.
Chairman Zaidi said that the main aim of the FBR, which it is working to achieve, is to enhance its tax base.
