Documented business can easily last for several generations: FBR chairman
ISLAMABAD: Federal Board of Revenue (FBR) Chairman Shabbar Zaidi on Tuesday said a documented business could last for several generations, while the undocumented business would start crumbling after first or second generation.
Addressing a media briefing in Islamabad, Shabbar Zaidi said, “This I am saying as a business advisor that until your business would remain undocumented its growth level will not be able to exceed a certain limit. If you exceed that limit with undocumented business then you will not be able to keep record of your money.”
It was the reason that businesses in America, Europe or India lasted up to 10 generations because they had documented setups, he said. “You should realize the need for this and pressurize the government to improve the documentation,” he maintained.
The FBR chairman said the parking lots where untaxed money was used should be minimized to curtail the non-taxing activities.
“Nobody in the world wanted to pay taxes but it is an obligation on everyone being a responsible citizen,” he said.
On Dec 26, the State Bank of Pakistan (SBP) had declared that online tax payment will be free from the following year in a bid to promote digital banking in the country.
Addressing a seminar, SBP’s Finance Department Director Qadir Baksh had said that as of January 1, 2020, the central bank would carry all services charges such as digital payment fee or transaction charges to the banks for the collection of the government taxes through the means of e-banking, against the old tradition of charging taxpayers.
This system will help in documentation of the country’s economy along with facilitating/encouraging taxpayers said Baksh, at SBP’s seminar “Collection of government taxes through Alternative Delivery Channels (ADCs).”
Currently, the transaction fee of Rs 10 charged for tax payment is up to Rs100,000, whereas, Rs20 is charged for Rs 100,000 to Rs1 million and Rs50 is charged in transaction fees for above Rs1 million, according to media reports.