Tuesday , July 14 2020
Breaking News
Home / Breaking News / FBR proposed to make CNIC mandatory for purchase of properties
FBR proposed to make CNIC mandatory for purchase of properties

FBR proposed to make CNIC mandatory for purchase of properties

KARACHI: Federal Board of Revenue (FBR) has been proposed to make computerized national identity card (CNIC) mandatory for purchase of movable and immovable properties for bringing potential taxpayers into the tax net.

A presentation made on behalf of Pakistan Tax Bar Association (PTBA) for submission of proposals for budget 2020/2021, it is highlighted that Pakistan has a lower tax-to-GDP ratio as compared to regional and other countries, which is causing serious disparity between various sectors of the Economy.

All the segments of the society are not contributing their due share of tax on their income in accordance with their contribution in the GDP.

The number of Active Taxpayers are substantially low, as such broadening of tax base at fast pace is the needed.

For broadening the tax base and to improve the tax to GDP ratio following recommendations are made:-

FBR should extract information from withholding statements, details of government supplies and maintain a database of above third party information. Conduct the data mining and data analysis to generate complete profile for cross verification of data of the existing taxpayers as well as discovery of new taxpayers;

CNIC/NICOP/Passport should be made mandatory for purchase of any moveable or immovable properties, assets and major expenditure;

Relevant organizations, departments, institutions including utility companies, banks, NADRA and information obtained related to offshore transactions should submit prescribed information on quarterly basis to the FBR.

Exemption under Section 111(4) of the Income Tax Ordinance, 2001 may be allowed only to the foreign remittance brought into Pakistan through proper banking channel for investment for Balancing, Modernization and Replacement (BMR) of existing industrial undertakings or for making fresh investment in industrial undertakings;

Effective enforcement should be ensured for compliance of filing of Return of Income under section 114 of the Ordinance, 2001;

At least for five years jurisdiction (other than LTUs, CRTOs) should be made and fixed on territorial basis to avoid slippages of potential taxpayers.