The National Board of Revenue (NBR) will request government to make the submission of tax returns receipt mandatory for getting advantage in various sectors including source tax deduction, NBR member (income tax policy) Md Alamgir Hossain told the daily sun on Tuesday.
The move will increase revenue collection from domestic sources, he added.About 2.5 million TIN holders have submitted income tax returns where more than 5 million TIN holders are using TIN for taking advantage in various sector.
In the budget for FY21, the government has made submission of tax returns mandatory for all TIN holders, keeping few exceptions.
At present, banks deducted 10 percent source tax on profit or interest of depositors who hold TIN certificates, otherwise banks cut 15 percent source tax on profit of depositors.
The NBR sources said that they usually issued tax acknowledgement receipts to the taxpayers instantly after receiving income tax returns as per instructions of the NBR issued September 2020.
Earlier on March 25, the NBR requested the government agencies concerned to make mandatory the submission of proof of filing income tax returns for receiving a number of services including registration and renewal of motor vehicles, trade licences and participating in tenders.
The moved was taken to boost the voluntary tax compliance as well as expanding the tax net, which will also help to increase the government revenue collection, tax official said.It was found that many individuals and businesses having TINs did not file income tax returns but received the services by showing TIN certificates which were generated automatically from the NBR system when an individual obtained the e-TIN, he said.
Currently, there is no provision of cancelling the e-TIN or barring the generation of e-TIN certificate in the Income Tax Ordinance-1984 for not filing income tax returns, the official said.
The absence of such provision creates scope for avoiding submission of income tax returns, tax evasion and concealment of income for unscrupulous TIN holders, he observed.
In this context, different government offices, divisions and ministries are requested to make submission of tax acknowledgment slips for the latest fiscal year for participation in tenders, enlistment as suppliers and contractors, registration and renewal of licences and others services.