Limited tax base is one of the key challenges and the government in committed to expanding the tax base to enhance revenues exponentially, said Federal Minister for Finance and Revenue Shaukat Tarin.
The minister’s comments came during a steering committee meeting to review progress on broadening of tax base and integration of retailers into Point of Sales (POS) system by the Federal Board of Revenue (FBR).
In the beginning, FBR member (IT) briefed the participants about operational terms of reference (TORs) for integration of retailers into the POS system. The TORs have been formulated in consultation with key stakeholders including representatives from the private sector to have a proper system of check and balance in place, he added.
While reviewing the progress of the steering committee, the finance minister stated that the government has incentivised the retailers by giving tax credit on electronic cash registers during the new budget 2021-22.
The underlying rationale is to give incentives to the tax payers in order to broaden the tax base and at the same time, reiterated to take stern action against tax evaders who are not willing to be part of the tax net. The minister urged the FBR to strictly adhere to timelines and benchmarks and follow-up the whole exercise for broadening tax base on a regular basis.
Published in The Express Tribune, July 14th, 2021.
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