ISLAMABAD: Federal Minister for Finance and Revenue Shaukat Tarin on Thursday clarified that the imposition of sales tax on goods falls under the federal government’s jurisdiction and that the Federal Board of Revenue (FBR) chairman has made taxpayers’ lives easier.
The day before Tallinn made the above remarks, the FBR chairman had sought the right to impose a sales tax on the retail prices of goods from the Standing Committee on Finance of the Senate.
Speaking at a ceremony in Islamabad, the finance minister reiterated that sustainable development is only possible if people pay taxes.
“We will facilitate taxpayers; however, everybody has to pay taxes,” Tarin said, adding that in the next few weeks, the revenue board will approach people without prior notice.
He, however, clarified that taxpayers will not be harassed under any circumstances.
The Minister of Finance insisted that the simplification of the tax system would increase tax revenue, adding that if people do not pay taxes, a country cannot make progress.
“Only two million people pay taxes in Pakistan, but this system will soon change,” the minister said, adding that the government and FBR plan to reach out to people with the help of technology and if they still don’t pay taxes, legal action will be taken against them.
“Everybody should pay taxes before we approach them,” Tarin stated, urging tax evaders to register themselves before the government or FBR questions them.
Tarin said: “If I stay in this office, I assure everybody that not only people would pay income tax but everybody would have to pay sales tax as well.”
He was of the view that people live in bog houses, travel in luxurious cars, and dine in at expensive restaurants, but when it comes to paying taxes, people pay a very little amount.