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Eastern Region brings in 44,000 in tax net

SAEED AKHTAR BALOCH

LAHORE: The Income Tax Department's Eastern Region has been able to bring 44,000 new tax payers into the tax net during the financial year 1998-99, increasing the revenue of the government substantially. This was claimed by Vakil Ahmed Khan, Regional Commissioner of the Eastern Region.

He said that the registered tax payers with the Eastern Region had increased to 267,000 up to June 1999. He said that efforts were also under way to bring more tax payers into the tax net.

Meanwhile, it is learnt that on the directives of the government the Central Board of Revenue (CBR) has directed all the regional commissioners of Income Tax Department to expedite their efforts to bring more into the tax net.

However, tax collectors are of the view that revenue shortfall is not due to non-reporting but because of under-reporting by the tax payers. They say that the tax payers are not ready to pay taxes willingly. At present, the total number of tax payers in the country is 3.4 million, which is not a low number provided they pay honestly and with a sense of national responsibility.

"The problem we are facing at the moment is that the tax payers, who are on our record, are not paying their dues honesty, which has resulted in shortfall of revenue," said a highly-placed source while seeking anonymity. The shortfall, therefore, is not due to non-reporting but because of under reporting by the tax payers, he observed.

He said that the assessees, who were required to declare their income under the Universal Assessment Scheme (UAS), introduced by the previous government, were dodging the tax collectors. They always conceal their income and, hence, cause losses to the national exchequer.

Under the UAS, he added, if any official of the Income Tax Department receives a return and stamps it, it amounts to an assessment order. Therefore, under the rules and regulations, he cannot challenge the income declared by the assessees, he said. This kind of under reporting by the assessees is a main hurdle in meeting the targets set by the CBR, he added.

"There is no tax culture in the country and the people hire the services of audit firms and tax experts who tell them of new ways and methods to evade taxes," he said and added "until and unless the government creates an atmosphere in which people find no way to escape, no one will be ready to pay taxes."