FBR ready to name and shame 6 million tax thieves

The Federal Board of Revenue (FBR), whose tax refunds are higher than its collections, is going to make public the names of some six million tax evaders under its “Name & Shame Programme”.
An FBR official revealed this at Karachi Chamber of Commerce and Industry (KCCI) on Wednesday. The official said the FBR had collected data of six million tax evaders to whom notices would soon be served and in case of a failure to pay the minimum taxes they would be shamed by their names be made public under the Board’s “Name & Shame Programme”.
Further, he said the FBR’s tax refunds had exceeded the tax amount collected by the Board.
“This points out loopholes in the system and the indulgence of some FBR officials in corruption,” Muhammad Raza Baqir, Member Inland Revenue, Operation at the FBR, said in a meeting with businessmen led by President KCCI Muhammad Haroon Agar at the Karachi Chamber.
His remarks came after the KCCI President expressed his reservations over the FBR’s recently-issued “discriminatory” SROs to give amnesty to some blue-eyed taxpayers.
Asking the KCCI for proposals on the controversial SROs, Baqir viewed that if the chambers and associations could take responsibility and verify the genuine cases, the FBR could release refund claims and a relevant system can be installed at the KCCI.
He said the tax-to-GDP ratio was very low; out of 180 million Pakistanis the percent of taxpayers was only 0.7. He said 25 percent revenue was collected from taxes levied on petroleum products.
Baqir said 50 percent of the exports were from textile sector which was zero-rated. There were 130 to 140 items falling under zero-rating.
The FBR official said fake and flying invoices and corruption could not be eliminated as the FBR lacked the capacity to check frauds.
If they didn’t pay the minimum taxes under amnesty scheme, the FBR would make their names public, he warned.
Baqir said FBR had no choice but to give amnesty and the department did not hold the capacity to handle new six million taxpayers.
Muhammad Haroon Agar President KCCI said business community was concerned over and had rejected the recent controversial SROs, numbering 212(I)/2013, 154(I)/2013 and 98(I)/2013, issued unilaterally by the FBR.
The FBR has recently issued SRO 179(I)/2013 to provide amnesty to such fraudulent elements allowing them to pay just two percent Sales Tax instead of five percent as levied under SRO 1125(I)/2011.
“The discriminatory SROs being issued one after another were tantamount to adding up further to the sufferings and multiple threats already faced by the business community in the city,” Agar said.
He asserted to rescind the aforementioned SROs and immediately consult all the concerned stakeholders in this regard.
Sweeping changes in taxation policy and rules through number aforementioned and other SROs had caused a negative impact on business and industrial activities due to higher rates of sales tax and assigning the role of withholding agent to exporters, importers, suppliers and processors.
He demanded that all SRO’s and changes made in rates of Sales Tax, Income Tax and rules introduced after 31st December, 2012 must be held in abeyance and their implementation should be deferred until consultations are held with all stakeholders, chambers and trade bodies.
Former President KCCI Majyd Aziz, Senior Vice President Shamim Firpo, Vice President Nasir Mehmood and the Managing Committee Members and KCCI’s members from trade and industry particularly from textiles, chemicals and yarns also participated in the meeting.