The year-wise and tax-wise revenue collected by the Federal Board of Revenue (FBR) during the last three years is as under:
Following steps have been taken by the government to enhance the tax revenue:
Inland Revenue:
- Point of Sales (POS) Integration of Tier-1 retailers
- High Net-Worth Individuals (action through third party data utilization) obtained from DISCOs & Gas Companies, Banks, etc.
- Tax Asaan a mobile application introduced to facilitate taxpayers
- IREN established in 2019 to combat illicit trade
- Operationalization of Track & Trace System
- Providing the facility of e-payments, greater induction of technology to improve trade /logistic performance indicators; such as the development of e-payments platform
- Risk-based Audit
- Transformation of traditional audit processes into e-Audits
- Automation of audit monitoring system
- Follow up on high-value cases for early decisions.
Customs:
- Collection of customs duty and related Sales tax, Withholding tax, and Federal Excise Duty (FED) depends upon the quantity of goods imported into the Country. This collection mainly relies on the valuation/assessment of imported goods.
For proper valuation/assessment of goods, the following steps have been taken:-
(i) Revamping of Valuation Ruling (VRs).
(ii) Utilization of Electronic Data Exchange (EDE) data of China for deep analysis.
(iii) Use of ―structured description‖ in Customs Computerized Clearance System.
Following legal provisions have been made in Customs Act to determine the correct value of imported goods and increase in revenue:—
(i) Rationalization of penalties.
(ii) Introduction of Master Bill of Lading for Shipping/freight forwarding agents.
(iii) Use of international references and accredited international publications like Reuters (Palm fatty acids etc.), IHT market (Hydrogen Peroxide), ICIS, LME, etc. for assessment. These publications provide up-to-date and real-time data/value of imported goods.
- Rationalization of customs tariffs through active collaboration with the Ministry of Commerce, National Tariff Commission, and different trade bodies, etc. to promote trade and investment.
- Introduction of National Single Window (WINPAK) for increased efficiency, timely/informed decision making, and integrating all stakeholder i.e. private sector and government.
- Providing the facility of e-payments, greater induction of technology to improve trade/ logistic performance indicators, a recent example is the deployment of e-payments platform.
Note: The above information was shared with the Senate by the Minister for Finance and Revenue Shaukat Fayaz Ahmed Tarin on January 7, 2022.
