FBR starts implementing new tax collection system

FBR starts implementing new tax collection system

KARACHI: The Federal Board of Revenue (FBR) has started implementing new Hybird tax collection system to enhance speedy tax collection from July 1, 2016 throughout the country in place of existing Functional Based System, the sources in the FBR said here on Monday. However, the Large Tax Payer Units (LTUs) will work on their existing tax collection policies.

According to the source, the approval for the implementation of Hybird System have been taken from the Parliamentary Committee and all necessary measures have been taken to improve the Tax net through this system. The FBR would completely enforce this system in next few months.

Under this system, the source said, four large Tax Payer Units have been set up who will see the matters of big corporate companies and institutions of the country, meanwhile eight Regional Tax Offices are being set up who will monitor the tax collections from small corporate sector and companies.

In third category, the FBR would set up 13 Regional Tax Collection Offices for non- corporate sector who will monitor the cases of Association of Persons and Individual non-tax payers while the FBR would set up 56 regional offices in addition under the supervision of RTOs throughout the country, who will collect information of the non-tax payers.

The source said that this new tax collection system have been introduced by the FBR after the final approval of the parliamentary committee, under which a circle-based system is being introduced again for the small tax payers and Associations of Persons, while Large Tax-Payer Units will work on existing tax based system who will collect the tax from Big Units/Companies and big corporate tax payers.

The source said the FBR has decided to convert Tax Facilitations Centers into Commissionerate and Composite Units for the non-corporate tax payers, under which eight Commissionerate and Composite Units would be set up.

These Units would also monitor the given targets on monthly basis and review the performance of the tax collection officers. The appointed officers would be given enforcement power and to take action against any non-tax payers individually or the companies.

What is your view on this ? Let us know in the comments section