ISLAMABAD: Setting aside the resistance from the business community the Tax Harmonisation Bill will be tabled in Parliament after Eid.

After its passage, the Pakistan Revenue Service (PRS) will be in place for the first time in the country. Officers and departments of the income tax, sales tax and federal excise will be merged into the PRS. The officers hailing the Customs Group will, however, will have the option to continue working in the Custom group or join PRS.

The vetting of the draft bill got prepared by Federal Board of Revenue (FBR) Chairman Jamil Ahmad is currently being carried out by the draftsmen of the Ministry of Law and Justice. The chambers of commerce and industry and most of the members of other trade bodies of the country are opposed to the merger of the sales tax and income tax as refund of the sales tax is easier for them like in the past in case the departments of sales tax, federal excise and income tax continues to work separately. It will also facilitate them to resort to delaying tactics with regard to the payments of income tax liabilities.

Sources say that due to the merger of income tax, federal excise and sales tax departments into PRS, the FBR field formations will be facilitated to deduct the income tax from the sales tax refund. This will lead to a boost in the income tax recoveries.

The coming into being of the PRS shall facilitate to check actual turnovers as major tax paying organisations had been maintaining duplicate books of accounts and concealing actual sale and purchase from the income tax officials. It will be easier for the PRS officials to check actual turnovers and assess the income tax.

With PRS in place, the taxpayers in the field of hotel and restaurants will not be in apposition to evade taxes as they will not be in a position to manipulate books of accounts and the entire tax shall go to the national exchequer.


regards,
mkkhan