The Standing Finance Committee of the National Assembly ordered Thursday in the Federal Revenue Council (FBR) to incorporate guarantees before closing the bank accounts of unregistered companies, in the midst of tax evasion and a sub-declaration generalized by businessmen. The committee, which met here its president Syed Naveed Qamar in the president, examined the measures proposed by the FBR to enforce the compliance with the sales tax, including the disconnection of public services and the temporary freezing of bank accounts for non-sequences. During the meeting, the president of the FBR, Rashid Mahmood Langrial, gave a briefing to the committee. He said that unregistered businessmen could not operate a bank account under sales tax laws, adding that such a person would be signified before closing the bank account.
"The bank account of an unregistered person will be reactivated within two days of registration," He said. He revealed that of 300,000 industrial units in Pakistan, only 30,000 to 35,000 were registered with the authorities. Explaining reasons, he recognized that the tax rate in Pakistan was high.
"A third of the manufacturers are not registered in sales tax. People who even fall under tax nets do not produce statements," Langrial said. "Those who pay taxes underestimate their income," he said to the committee. "The electricity flight alone costs 500 to 600 billion rupees each year."
When asked how the FBR would identify companies that would not pay the sales tax, the president of the FBR explained that the income declared for the purposes of income tax would be used to estimate the volume of sales, supplies and global commercial activities. Measures would then be taken against people who do not register, he added. The member of the Javed Hanif committee supported the FBR proposals, but the chairman of the committee warned against the promulgation of a law aimed at catching taxes of taxes if it also negatively affects compliant companies. Another member of the Committee, Sharmila Farooqi, suggested that instead of making the sanctions more strict, taxpayers should be encouraged. "Reduce the tax rate. It will extend the tax net and encourage people to register them. The Minister of Finance Muhammad Aurangzeb replied that the threshold and the tax process would be improved. However, he clearly indicated that tax exemptions and amnesties would no longer be given. "The time for tax exemptions and amnesties is adopted. People must be introduced into the tax net."
Langrial urged the Committee to allow the FBR to temporarily deactivate the bank account of unregistered businessmen. The committee, however, ordered to include guarantees in the process. Petroleum Levy Meanwhile, the Committee approved a proposal to increase the oil development rate (PDL) to RS90 and impose carbon levy on petrol, diesel and furnace oil. Managers of the Ministry of Finance told the Committee that there was also a proposal to impose the PDL on furnace oil. Officials said 100 billion income rupees were expected from the PDL on furnace oil. They added that 1.2 million tonnes of furnace oil were imported for independent electricity producers of 1,000 MW (PPI). The secretary of the Ministry of Power said that the objective of resumption of the PDL during the financial year 2025-2010 had been set at Rs1 468 billion. Officials of the Ministry of Finance said that the government expected 45 billion income rupees thanks to the carbon tax. The chairman of the committee asked how many amounts the center would obtain if the tax was transformed into a carbon tax. On this point, officials said that the amount in this case would be 18 billion rupees. The committee was informed that the total amount of a levy had gone to the federal government, but in taxes, the provinces also obtain actions. The president stressed that the committee did not make any decision regarding a direct debit or tax on petroleum products. The industry secretary told the committee that 10 billion rupees of the carbon tax would be spent from the promotion of electric vehicles. He added that 30% of vehicles would be moved to electric vehicles by 2030. The production of all types of vehicles in the country is around 150,000, officials said, adding that there were currently 76,000 electric vehicles in the country. "Over the next five years, the production of electric vehicles will be increased to 2.2 million," said the secretary.
