ISLAMABAD: The Tax Reforms Commission (TRC) has not yet incorporated recommendations presented by members in its final report.
On 8th of the current month, the TRC laid the final report before the members for finalization and approval, however, the members further moved more recommendations in the report for incorporation,” a source at the Federal Board of Revenue (FBR) told Customs Today.
The source said that in September 2014 constitution of Tax Reforms Commission (TRC) was announced by the FBR. Mandate of the TRC was to review and rationalize direct and indirect taxes, customs tariff, review of autonomy and administrative structure of the FBR, creation of border force to deal with illegal movement of persons and goods across the international borders and any other related issue.
As per rules of terms of reference (ToRs) TRC was required to finalize its recommendations in 120 days by February 15,2015. Since the Commission could not finalize its recommendations within stipulated time therefore, a number of extensions were granted for its tenure. At present, the tenure of the Commission is extended up to 12th February 2016. However, on 08-02-2016, draft final report was presented by the Commission to its members for approval.
The source said that the members recommended certain changes/ amendments in the draft report and also authorized the Chairman, TRC to incorporate the changes and thereafter to present it to the Finance Minister. The details of finding and the implementation status shall be made public after the Final Report is submitted by Chairman, TRC to Finance Minister.
However, the source said that an implementation Committee had been notified to supervise implementation of recommendations, when these were submitted by Tax Reforms Commission and are approved by the federal government.
The source added that one of the agenda of tax reforms was the simplification of tax laws and tax forms so as to create conducive environment whereby taxpayers may discharge their tax liability in an easy manner.
Therefore Voluntarily Tax Compliance Scheme (VTCS) has been introduced by taking stakeholders on board to resolve these irritants by facilitating to new taxpayer trader to file single page income tax return under the simplified special provision of section 99A of Income Tax Ordinance, 2001.
VTCS is a scheme for simplified procedure of filing of Income Tax returns for traders. FBR has been holding discussions with the traders to facilitate their smooth entry into the tax-net. These discussions have finally borne fruits and a scheme has been designed that would meet the needs of traders while simultaneously protecting the integrity of the tax regime.