Govt tightens noose around non-filers to broaden tax net

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The government is implementing several measures to tighten the noose around the non-filers with a view to broadening the tax net, WealthPK reported.

According to a written statement of the Ministry of Finance submitted to the National Assembly, for the purpose of broadening the tax base and encouraging the business community to get themselves registered with the sales tax department, legal measures have been introduced.

Special powers have been granted to the Federal Board of Revenue (FBR) to direct the gas and electricity distribution companies for discontinuation of supplies to persons or entities required to integrate their outlets with the FBR or notified tier-1 retailers, who fail to integrate for the sales tax purposes.

Also, it added, extra tax has been imposed on industrial and commercial gas and electricity connections of the persons or entities who either failed to obtain sales tax registration number or are not on the active taxpayer list (ATL) maintained by the FBR, WealthPK reported.

For unregistered industrial consumers, the additional sales tax rate has been increased to 17% on monthly electricity bill, while for commercial consumers, the additional sales tax rate is 5% on up to Rs10,000 monthly electricity bill whereas 7% rate has been fixed on the billed amount between Rs10,001 and Rs20,000. Likewise, 10pc, 12pc and 15pc rates have been imposed for the bill amounts ranging from Rs20,001 to Rs30,000, Rs30,001 to Rs40,000, and Rs40,001 to Rs50,000, respectively.

To bring non-filers into the tax net, the scope of the Sales Tax Act, 1990 has also been enhanced.

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