Register with govt or face FBR, Shaukat Tarin warns tax evaders

Islamabad: Federal Finance Minister Shaukat Tarin Friday advised tax evaders to get themselves registered with the government as soon as possible and otherwise get ready to face the Federal Board of Revenue (FBR).   

“Everybody should pay taxes before we approach them,” the minister said while addressing a ceremony.

“If I stay in this office, I assure everybody that not only people would pay income tax but everybody would have to pay sales tax as well.”

The finance minister maintained that the simplification of the tax system increases tax revenue, adding that if people don't pay taxes, a country cannot progress. 

“Only two million people pay taxes in Pakistan, but this system will soon change,” the minister said, adding that the government and FBR plan to reach out to people with the help of technology and if they still don’t pay taxes, legal action will be taken against them.

Clarifying the imposition of sales tax on goods, Tarin said the tax fell under ambit of the federal government and that the FBR chairman had made taxpayers' lives easier.

Tarin’s comments came a day after FBR chairman had sought the rights to impose sales tax on retail prices of goods from the Senate Standing Committee on Finance.

The finance minister reiterated that sustainable development is only possible if people pay taxes.

“We will facilitate taxpayers; however, everybody has to pay taxes,” Tarin said, adding that in the next few weeks, the revenue board will approach people without prior notice.

He, however, clarified that taxpayers will not be harassed under any circumstances.