The Government of Pakistan’s tax collection unit that is Federal Board of Revenue (FBR) is planning to impose tax on the tax evaders and non-tax payers. Foreign Remittances will also be taxed as previously the remittances which were collected from Banks by-passed the tax channels hence remained untaxed. All these steps are planned as Government has over the last few months suffered heavy losses of revenues as the oil prices came down.
The government is planning to bring the foreign remittances into the tax net along with reducing the customs tariff slabs from 6 to 3 in addition the rates will also be reduced in the upcoming budget of fiscal year 2015/2016. The chairman of FBR Tariq Bajwa while talking to senators over the issue said that non-tax paying people and tax-evaders would have to pay higher withholding tax as per the new formula which will be introduced in the upcoming budget.
The chairman FBR further added that the consultations were underway with State Bank of Pakistan and the case was also taken to the federal cabinet in regards to bringing the foreign remittances into the tax net. He said that by far FBR has acquired valuable data which includes information about regular foreign visitors and people who buy luxury vehicles, he added that such people will be sent notices for tax recovery.