While launching automated Sales Tax Registration system for broadening of the tax base, the Federal Board of Revenue (FBR) has sent out 100,000 tax notices to high net worth individual non-filers who have undertaken trillion of rupees business transactions.

In the first batch FBR had sent out tax notices to 0.1 million non-filers high net worth individuals and in the second batch, another 0.1 million will be served notices next month.

“We have started utilizing our withholding database to broaden the tax base who have done trillion of rupees transactions but never bothered to come into the tax system,” FBR’s Member Inland Revenue (IR) Operation Seema Shakil said while addressing news conference along with other members on Tuesday.

FBR’s Member IR Policy Dr Hamid Ateeq Sarwar and Member Information Technology Aslam Mehmood Lillah were also present on the occasion. Seema Shakil said that power distribution companies (DISCOs) were updating their database as currently the electricity meters were not on the name of existing users so the DISCOs were instructed to update their database in order to ascertain exact level of consumption of individual/companies for the purpose of tax payment.

FBR’s Member IR Policy Dr Hamid Ateeq Sarwar said that the FBR would place online Cash Back System for payment of 5 per cent paid tax to customers through invoice verification system within next three months period.

There are 4,000 brands shops of shoes and clothes linked with the FBR system and the FBR was charging 14 per cent GST from them out of which 5 per cent would be given back to customers instantly after sharing an update on online invoice verification system. He said that FBR might hire services to go into different markets having scanners who would send invoices into FBR system for paying back amount out of paid taxes.

FBR’s Member Information Technology Aslam Mehmood Lillah launched automated simplified Sales Tax Registration System through which the taxpayer would be able to register himself/herself on mobile phone or computer but he/she would have to undertake biometric verification at Nadra’s e Saulhat Centers within 30 days of registration in order to avoid its misuse. FBR, he said, would undertake post verification of manufacturing units as for the purpose of registration of sales tax he will have to attach certain documents including bank account, address of the business facility, utility bills and photographs of installed machinery at manufacturing units. He said that the FBR would come up with simplified income tax return especially for salaried class next month.

FBR’s Member IR Policy Dr Hamid Ateeq Sarwar said the FBR would focus for bringing unregistered persons possessing commercial and industrial connection of utilities and it was aimed at bringing 0.3 to 0.4 million more non-filers into tax net at first stage. He said the FBR would focus on big retail stores having 1,000 square yard feet area of shops, second tiers of shops having electricity bills of 0.6 million (Rs50,000 per month). 

He said that there were 4,000 brand shops including shoes and clothes which were directly linked with FBR system. Now it is the responsibility of citizens to pay GST only on those shops having Sales Tax Registration Number (STRN). FBR, he said, would be coming up with invoice verification system where the customer will be given an opportunity to share the name of city, shop and receipts with FBR and then the system would identify those who were not into the tax system.