LAHORE: The Federal Board of Revenue’s Chief Commissioner Inland Revenue Regional Tax Office (RTO) Lahore has announced to consider extension of tax return filing date for the business community whereas the Commissioner will provide facilities to those cases who were facing unavoidable circumstances.
The Chief Commissioner, Nasir Iqbal, in a meeting with the business community at the Lahore Chamber of Commerce and Industry (LCCI) here on Thursday, assured that for improving the business environment, attention is being given for the linkages with business community, digitization of the system and documentation.
Iqbal further said that the sending of unnecessary notices has also been stopped.
“We were asked to survey the markets as many of the better businesses are not in the tax net but we did not do that because we are committed to not spreading fear. Last year a total of 588,000 tax returns were filed in RTO Lahore and every year around 80 thousand new taxpayers are joining the system.
Rather than pulling in those outside the tax net, it is restricting the use of untaxed and illegal capital. The tax rate and treatment for a non-taxpayer is different from that of a taxpayer. In the past, property tax for non-taxpayers was 2 percent and now the property tax for the taxpayer is two percent, which is adjustable but for those who are not taxpayers, the tax has been increased from two percent to 7.5 percent,” he added.
He also said that all possible efforts have been made for better implementation of Income Tax Ordinance 2001.
“In the tax year 2021, those who filed their tax returns guaranteed that they will not receive any unnecessary tax notices,” he maintained.
During the meeting, LCCI president Kashif Anwar demanded that the tax agency appoint a focal person who can be contacted in case of problems.
“LCCI and Federal Board of Revenue (FBR) are on the same page and want the tax net to increase. We also want facilities for the members of the LCCI,” he said.
Referring to SRO 1955(I)/2022, Kashif Anwar said that income tax forms have been simplified for retailers and shopkeepers with an annual turnover of less than 10 million.
“Since sales tax applies to turnover over 100 million, this simplified form should be for small retailers with an annual turnover of 10 to 100 million. This will enable more people to benefit from it and help in expanding the tax net,” he added.
The LCCI president also demanded that the assessment officers involved in the misuse or enforcement of the law should also be held accountable, especially those officers whose assessments are returned by tribunals or courts.
“The exemption granted under Sections 153 and 148 should be allowed to adjust the refunds, if this does not happen, taxpayers may face a severe cash crunch which is not fair at all,” he concluded.