FBR CLARIFIES NEWS REPORTS REGARDING BROADENING OF TAX BASE INITIATIVE

In a section of the press, reports have been published today regarding the Broadening of the Tax Base Initiative by FBR. The position is clarified as under:-

During the 1st Quarter of current financial year 30,533 notices were issued to potential taxpayer in cases where FBR had information of quantifiable economic activity and the person was not on tax roll. In order to ensure a higher standard of delivery of these notices, the online delivery report of the tracking software of the courier service has not been made the basis of reporting. Notices are reported as delivered only when the physical acknowledgement receipt with signature and particulars of persons receiving the notices is received back from courier. So far 11,373 notices have been delivered. Out of these 1189 have registered themselves as taxpayers and 9,365 notices have been returned undelivered by the courier. Of the undelivered notices, 30% were returned due to incomplete addresses, 32% addresses were outside service areas of courier service, 15% had incorrect address, 18% cases were reported shifted or closed and a further 5% refused to receive the notice. Delivery report of further 9,795 notices is in transit with courier. FBR is cognizant of the urgent need to improve the delivery rate and exploring alternate options for delivery of notices. It has been decided to utilize alternate courier services and Pakistan Post extensively for areas not covered by other courier services. NADRA has been contacted for provision of full addresses in cases where notices could not be served due to incomplete addresses or shifting of the potential taxpayers. As a last option the service through field staff shall be undertaken.

(Riffat Shaheen Qazi) Member (FATE)
Official Spokesperson, FBR

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