Karachi: The Federal Board of Revenue (FBR) announced that all their field offices will remain open during government holidays till December 31 to facilitate taxpayers submit their tax payments.
The FBR has sent instructions to all field offices and informed them that operations and tax collection activities will continue as normal on December 28 and 29.
The notice also stressed that all field offices must provide full support to reach the tax collection goals for the second quarter of fiscal year 2024-25 (October to December).
Moreover, the FBR has directed to speed up the collection of tax dues and focus on meeting the tax targets set for this month and the second quarter of the fiscal year.
The notice also mentioned that field offices need to work closely with the heads of bank branches to ensure effective tax collection.
In a recent development, FBR Chairman Rashid Mahmood Langrial told the Senate Standing Committee on Finance about changes to tax laws and warned that businesses would face closure and property seizure if they don’t actively file taxes.
According to reports, the meeting, led by Senator Saleem Mandviwala did discussion on the changes to tax laws. Rashid Mehmood Langrial told the committee that the new changes wouldn’t bring new taxes but would target non filers. He pointed out a difference between income declaration and actual expenditure.
He stated that most businesses are not registered or pay very little tax. Technology use in sales tax registration has been enhanced. Businesses that don’t file taxes will risk having their assets seized and operations shut down.
Langrial added that these new rules wouldn’t affect 95% of the population. The changes aim to boost the tax-to-GDP ratio to 18% in five years. Currently, 6.2 million people submit tax returns, with 4.2 million being active taxpayers.
Senator Saleem Mandviwala raised concerns that business owners fear sales tax registration and don’t understand its process.
Finance Minister Muhammad Aurangzeb said they would review FBR’s performance and mentioned discussions with business groups about the bill. He added that non-taxpayers would be brought into the tax system and aim to raise the tax-to-GDP ratio from 10.3% to 13.5% in three years.
FM highlighted the importance to rebuild confidence in the tax authority and expand the tax base. He mentioned that while Pakistan has a low tax-to-GDP ratio and the neighbor countries maintain higher ratios and that is the reason that is limiting Pakistan’s economic growth potential.
 announced that all their field offices will remain open during government holidays till December 31.){kind=link}