FBR to tighten noose around five major tax-evading sectors

[Shahzaz ud din]

FBR to tighten noose around five major tax-evading sectors
Revenue board decides to invite bids for electronic surveillance of sugar, cement and fertiliser sectors

By
Ahmad Ahmadani
-
November 2, 2019
0
5

ISLAMABAD: In an effort to meet the conditions of the International Monetary Fund (IMF), the Federal Board of Revenue (FBR) is all set to place a system that could electronically monitor the production and supply of sugar, cement, fertiliser and beverages.

Following the grant of licence to the National Radio Telecommunication Corporation (NRTC) to place a ‘track & trace system’ for electronic surveillance of production and supply of tobacco products, the FBR has now decided to invite applications for placement of the same in the sugar, cement, fertiliser and beverages sectors.

Sources said that the IMF had directed the relevant departments to place IT-based solutions for five major tax-evading sectors by the end of the year. “The FBR has been finalising its necessary preparations to initiate the bidding process in this regard.”

As per the sources, under the Memorandum of Economic Framework Programme (MEFP) agreed with the IMF for the release of $6 billion loan, no amnesty scheme was to be introduced until the end of the programme. “The finance ministry, in order to meet IMF conditions, has already directed the FBR to issue the licence and implement the system accordingly.”

Sources said with the implementation of this system in above-said sectors, FBR will be able to generate additional revenue of Rs20 billion to Rs30 billion through sales tax. Similarly, with the implementation of the track & trace system, the sale of sugar, cement, fertiliser, beverages and other products without a stamp would be seized and action would be taken against vendors who would try to sell commodities without stamps, they added.

It is pertinent to mention that FBR has devised a mechanism to grant licences for the establishment of track and trace system in different sectors. In this regard, a licencing committee was formed under the Licensing Rules, 2019 to prepare recommendations.

 

[pakpride00090]

Now watch these mill owners and industrialist threatening govt with strikes , just like the traders.

 

[jupiter2007]

FBR should also focus on other industries...

• Automotive Industry
• Real estate companies/Construction/Housing Scheme
• Electronics & Technology
• Gold/Silver/precious gemstones industry
• Marble and granite industry

 

[Viking 63]

Finally after 70 years we have a govt who is doing what should have been started 70 years ago. But lets see if they go after Pakistan's biggest Mafia ***The Agriculture sector***.

 

[Indus Pakistan]

Finally after 70 years we have a govt who is doing what should have been started 70 years ago. But lets see if they go after Pakistan's biggest Mafia ***The Agriculture sector***.

This has been the problem for 70 years. Every country needs taxes to run. In Pakistan very early on there was not enough tax to meet the running costs of the country so governments went abroad and sold themselves to USA and other donors for money. That is how Pakistan has been living. By begging for grants, loans from USA and international banks. This has to stop.

 

[fitpOsitive]

Finally after 70 years we have a govt who is doing what should have been started 70 years ago. But lets see if they go after Pakistan's biggest Mafia ***The Agriculture sector***.

Yes, salute to FATF.

 

[khail007]

Following also to be included:
Cattle and poultry feed producers
Beauty parlours
Private Schools
Property Dealers

 

[jupiter2007]

Government should push the idea to small/retail businesses to invest in advance POS system.

 

[maxpayne]

All nascent sectors must be relaxed and all mature sectors should be taxed

 

[Talha Asif]

Finally after 70 years we have a govt who is doing what should have been started 70 years ago. But lets see if they go after Pakistan's biggest Mafia ***The Agriculture sector***.

Agriculture sector already collapsed and they pay agri tax since 1997. If govt facilitate villages then they imposed ore taxes but currently there is no funds for villages even for cleaning or water supply not managed by govt since 1947

 

[Cookie Monster]

Finally after 70 years we have a govt who is doing what should have been started 70 years ago. But lets see if they go after Pakistan's biggest Mafia ***The Agriculture sector***.

I personally know some farmers who are struggling. Before the government starts taxing them..the government should also step in for a few things that ensure price regulation.

In US if there is a huge surplus of something that brings the prices down by a huge margin(increases supply), the gov steps in and buys a portion to ensure that the farmers don't take heavy losses. It's a huge investment to buy the seed, fertilizer, pesticides, and watering and labor costs...and if the payout doesn't cover for that at the very least it can take a heavy financial toll.

If the government steps in for somewhat of a price regulation then not only will it ensure that the farmers stay afloat if a huge surplus occurs but it would also provide relatively cheaper food to the poor and low income Pakistanis.
Once all that is sorted out then this sector should be taxed as all others are.

 

[jupiter2007]

Finally after 70 years we have a govt who is doing what should have been started 70 years ago. But lets see if they go after Pakistan's biggest Mafia ***The Agriculture sector***.

You are right, sugar mill owners...

 

[AsifIjaz]

2 sectors that beat sugar, beverages and cigarettes are
1...schools
2... Hospitals and clinics

Agud practice easily earns u a daily profit of 1 lac per day and i am being pessimistic here.

 

[R Wing]

FBR to tighten noose around five major tax-evading sectors
Revenue board decides to invite bids for electronic surveillance of sugar, cement and fertiliser sectors

By
Ahmad Ahmadani
-
November 2, 2019
0
5

ISLAMABAD: In an effort to meet the conditions of the International Monetary Fund (IMF), the Federal Board of Revenue (FBR) is all set to place a system that could electronically monitor the production and supply of sugar, cement, fertiliser and beverages.

Following the grant of licence to the National Radio Telecommunication Corporation (NRTC) to place a ‘track & trace system’ for electronic surveillance of production and supply of tobacco products, the FBR has now decided to invite applications for placement of the same in the sugar, cement, fertiliser and beverages sectors.

Sources said that the IMF had directed the relevant departments to place IT-based solutions for five major tax-evading sectors by the end of the year. “The FBR has been finalising its necessary preparations to initiate the bidding process in this regard.”

As per the sources, under the Memorandum of Economic Framework Programme (MEFP) agreed with the IMF for the release of $6 billion loan, no amnesty scheme was to be introduced until the end of the programme. “The finance ministry, in order to meet IMF conditions, has already directed the FBR to issue the licence and implement the system accordingly.”

Sources said with the implementation of this system in above-said sectors, FBR will be able to generate additional revenue of Rs20 billion to Rs30 billion through sales tax. Similarly, with the implementation of the track & trace system, the sale of sugar, cement, fertiliser, beverages and other products without a stamp would be seized and action would be taken against vendors who would try to sell commodities without stamps, they added.

It is pertinent to mention that FBR has devised a mechanism to grant licences for the establishment of track and trace system in different sectors. In this regard, a licencing committee was formed under the Licensing Rules, 2019 to prepare recommendations.

Almost every bigwig politician has a sugar mill. No wonder they always get a subsidy and make insane profits every year, regardless of what they show on their books.