In an innovative move which will lead to improved public perception about the tax collection, the Federal Board of Revenue (FBR) is considering to allow electronic access to details of taxes generated from the fine dining restaurants from the next fiscal year.
A highly-informed source said that the proposal was under consideration, as the general perception is that taxes paid in high-end restaurants, are equally divided between the owners and taxmen. The new system will allow people to check whether their paid amount of tax is deposited in the national exchequer.
Most of the restaurants issue receipts without national tax number and if they do the same are not genuine ones. The tax authorities are under pressure to improve tax compliance at the fine dining places and make details of tax collection public.
In major restaurants, no place is available during the lunch and dinner time but their tax returns show minimal income. The official assessment is that what the restaurants pay in a month in taxes is not more than their two to three days tax collection.
Sources said the government was going to appoint for the first time a professional information technology expert to head the FBR automation department – Pakistan Revenue Automation Limited (PRAL). All the process would be carried out on merit for which the announcement was also likely to be made soon, they added.
The PRAL, under the new chief, will be entrusted with the gigantic task to push through technology in all tax departments. The tax compliance is the top agenda item of IFIs for the next fiscal year. They want to utilise technology for enhancing tax compliance and monitoring during the next fiscal year.