Trillions of Rupees in Sales Tax Evasion in the Country: FBR Chairman
A Sales Tax General Order will be issued, setting a limit for electricity bills, says Chairman of the National Assembly’s Finance Committee.
Islamabad ( Web News )
Chairman of the Federal Board of Revenue (FBR) Rashid Langrial stated that trillions of rupees are being evaded in sales tax in the country. He emphasized that individuals earning a monthly salary of 50,000 rupees pay taxes, while someone earning 25 million rupees per month should also contribute, with an estimated income of 600,000 rupees. He made these comments during a briefing to the National Assembly’s Standing Committee on Finance.
The FBR Chairman pointed out that most industrial consumers are not registered for sales tax, and to bring them into the tax net, a new law has been introduced. He mentioned that a Sales Tax General Order would be issued, under which a limit would be set for electricity bills. These consumers use industrial electricity, and this includes large industrial units.
Rashid Langrial stated that anyone with an annual income of 25 million rupees should pay taxes. If a person with a monthly income of 2.5 million rupees is earning 600,000 rupees, they should also pay taxes. He added that the FBR is requesting the authority to suspend the bank accounts of such individuals, with the aim of impacting their business operations. He emphasized that those paying monthly electricity bills of 10 crore rupees should be bound by this system, and they will be formally notified in advance.
The Chairman also clarified that industrial units would be given 15 days to register for sales tax. After hearing the case, the industrial unit would have the right to appeal.
Member of the National Assembly’s Standing Committee on Finance, Hina Rabbani Khar, stated that suspending bank accounts would be an extremely draconian law and emphasized the need for transparency in the regulations. She pointed out that if a bank account is suspended, how would the individual be able to pay salaries?
Bilal Azhar Kiani stated that bank accounts should not be closed for salary payments, while Naveed Qamar expressed concern, saying that before granting such harsh powers, assurance should be given that the FBR will not use the tax revenue for its own expenses.