(Web Desk Monitoring) — The Federal Board of Revenue (FBR) has announced plans to increase the assessed value of immovable properties in major urban cities from 75% to 90% of the market rate, with an official government notification expected in July 2024.
This adjustment comes alongside the FBR’s intention to introduce a new simplified tax scheme for retailers, following the failure of the previous voluntary Tajir Dost Scheme.
In a discussion with reporters after a Senate panel meeting, Senator Faisal Vawda emphasized that the federal budget for the upcoming year will be passed regardless of any obstacles. He assured that the budget will be approved at all costs.
Mir Badshah Wazir, FBR’s Member Inland Revenue (IR) Operation, highlighted that the valuation rates of properties will be revised shortly after the approval of the 2024-25 budget, increasing the rates.
The Senate panel has recommended the abolition of the 10 percent GST on newsprint. The FBR reported that efforts to expand the tax base have resulted in adding 1.5 million new tax filers in the previous fiscal year.
Senator Anusha Rahman argued for more drastic measures to significantly increase the number of tax filers, suggesting that non-filers should be jailed as a solution. The FBR disclosed that the total number of tax filers is approximately 4.5 million, but Senators Farooq Naek and others raised concerns about the number of “nil-filers” – those who file taxes but report no taxable income. FBR officials acknowledged that over 30% of filers might be “zero-filers,” though they did not provide the exact number.
The FBR also revealed uncovering Rs 756 billion worth of alleged tax fraud through fake invoices, leading to the arrest of 70-80 individuals. The steel sector was identified as a major contributor to these fraudulent activities, with scrap steel-related schemes causing an estimated annual loss of Rs 60-70 billion to the national treasury.
Senate Standing Committee on Finance Chairman Saleem Mandviwala criticized the FBR, stating that despite claims over the past 12 years of efforts to bring undocumented sectors into the tax net, little has been accomplished.
