The government has imposed sales tax for past so many years, but because of the nexus between corrupt officers of FBR and retail traders, the tax receipts fall far short of expected targets, simply because of theft.
Sheer criminal connivance of tax collectors has led to theft of hundreds of billions of rupees in tax which is collected from the consumers by retailers and wholesale dealers, but not deposited with state.
Loopholes built into the system which facilitate sales tax theft have to be plugged. Refunds to foreign tourists staying less than six months in Pakistan, or senior citizen NIT holders will provide a double check to prevent sales tax theft.
Tax officers assigned to ensure sales tax collection should be held accountable for any sales tax not refunded to the state, or doctoring of sales register machines by retail store owners within their area of jurisdiction.
Tax refund process should be simplified by allowing such refunds from a variety of banks including State Bank and National Bank of Pakistan.
As long as all assets owned by individuals are not documented, tax collection pilferage will be facilitated and the FBR is directly responsible for any delays that occur, or errors in documentation.
Those assets owned by any individual, whose NIC photocopy is submitted, should be made to justify the source of his or her income, which will prevent tax evasion of billions of rupees. It is time tax-payers be given certain privileges so that a tax culture is promoted in this country.
MALIK TARIQ ALI
Lahore