Islamabad: Through the upcoming Finance Bill 2019, the federal government of Pakistan will introduce measures to document the economy and broaden the tax base, according to a news source. Federal Board of Revenue Chairman Shabbar Zaidi has prepared a proposal to bring more people into the tax net.
The FBR wants the government to make it compulsory for owners of credit card machines to file their income tax returns, as a large number of shops and businesses run these machines. The board also suggested the government to make it mandatory for the manufacturers to register their dealers and distributors for filing returns. The FBR has learnt that many dealers of known manufacturers are Benami, as the existing taxation system encourages manufacturers to not declare their expenditures.
In addition, the board is considering a proposal to give tax exemptions to exporters if they file their income tax returns and declare their expenditures. It is also believed that the presumptive tax regime for importers will abolished in the upcoming budget.
In the Finance Bill 2019, the government will announce sales tax on restaurants from the next fiscal year. The revenue collected from restaurant owners will be distributed to the provinces. Furthermore, the relaxation to bring one phone without paying tax by incoming passengers will also be removed. At the same time, the FBR proposed the government to reduce taxes on the import of mobile phones. The FBR will also analyse the tax gap to identify untaxed business activities.
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