Analysis

New Tax Audit Policy: Over 93 Thousand Taxpayers Selected For Audit

Shifting from the trends of yore, the new tax audit policy will help generate revenue on a better rate. It will also ensure compliance with existing tax law, said Rana Seerat, FBR member taxpayer audit on Friday.

At Senate Standing Committee on Finance held by Saleem Mandviwalla, Ms. Seerat briefed the members about the audit selection. She said that as per the risk parameters, 1.2 million taxpayers have primarily been selected for audit. 0.7 Million out of 1.2 million didn’t fall under the category so 93,276 out of the remaining 500,000 tax payers of the shortlisted 1.2 million have now been chosen for the audit.

The members of the committee asked for details of the new audit policy with taxpayers’ details, polling time, etc. But the member of FBR denied any information to be shared. Ms. Seerat declared that as per the amendments made in Finance Bill 2013, these details were avowed private.

Mr. Mandviwalla on behalf of the members declared to turn down the amendments in the next fiscal year’s finance bill.

Also Read: PTCL declines to arrange audit by the AGP

PPP Bill Delayed

A vocal argument about the unnecessarily triggered bill erupted against the PPP initiated draft of Public-Private Partnership Bill. Following it, the senate committee deferred the bill to build governing body to supervise the construction projects.

Senior finance ministry members said that in the future, private sectors would be performing the task in joint ventures due to the governments insufficient funding for construction projects.

Under the public-private partnership, this law will provide supervised context for the projects.

The Grief of Local Auto Industry

The members of the committee declared the import of auto parts as raw material harmful for the native industry. Additionally, the committee concluded that if this practice proceeds, the local industry will not develop even in the next 50 years.

FBR said that according to IPO, 2016, it is illegal to import used and old spare parts (including repairable steel scrap parts). Anyone caught with it would be fined with 20% of the import value. Even the cut pieces of chassis of old auto vehicle are also banned to import, whether or not sold as steel scrap.

Quick Read: FBR announces new real time monitoring system for for tax collection by telcos

The tax official said that imported goods would be examined through a specific method. This is to avoid any chances of incorrect declaration in the import of such spare parts. Additionally, every batch of imported used and old spare parts would be examined 100%.

The recovery fine on such imported spare parts as scrap should be increased, decided the Senate committee and FBR officials. This will help level the import rates of such items with the rates of brand new vehicles. Moreover, the committee decided to impound such imported parts otherwise.

Source: Dawn

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