10-13-2010, 12:50 PM
The Federal Board of Revenue (FBR) has decided to announce a new kind of lucrative scheme "Consumers Lucky Draw" as an incentive to the general public for documentation of the national economy, broadening the tax-base and increasing revenue collection during 2010-2011.
A senior tax official on condition of anonymity told this scribe on Wednesday that "Consumers Lucky Draw" would offer expensive prizes on submitting invoices/documented receipts of purchases, shopping and dining at restaurants/hotels etc.
The scheme would offer grand prizes to attract maximum consumers to particulate in the "Consumers Lucky Draw". The FBR has finalised the plan and submitted to the Ministry of Finance for final approval. The FBR has taken a U-turn for the documentation of the economy by introducing such kind of schemes beside enforcement and legal actions against the non-compliant businessmen.
According to the salient features of the "Consumers Lucky Draw" the government would allocate huge budget for the scheme to pay cash prices on monthly or quarterly basis. The scheme would play an important role in the documentation of economy by encouraging tax culture where receipts would be demanded from shop, retail outlets, shopping malls, hotels and restaurants etc.
The consumers would submit the purchase receipts, sale invoices and other receipts to the FBR for participation in the draw. The FBR will offer a wide range of prices to the participants and use these invoices/receipts to broaden the tax-base. A grand function would be held at the FBR on regular basis to announce names of the winners. In this way, the FBR will be able to track all documented and undocumented business units and establishments with the help of data available with the general public.
The FBR would also be able to document persons making purchases on credit cards and those having receipts of huge purchases, but operating out of the tax net. So far, it has not been decided whether the FBR would seek National Tax Number (NTN), Computerised National Identity Card Number (CNIC), residential address or telephone number of the consumer taking participation in the "Consumers Lucky Draw" for identification purposes.
Sources said that the "Consumers Lucky Draw" would attract maximum consumers through awareness campaign under the drive to document the economy. The FBR has offered different amnesty schemes in the past for the regularisation of un-disclosed income and assets, but such schemes have been failed.
It is important to mention that the FBR has not been able to bring rich class into the tax net and enforcement actions like arrest of defaulters has been withdrawn by the board. The new strategy to offer schemes of lucky draw seemed to be a successful attempt to encourage people to operate under the tax net.
A senior tax official on condition of anonymity told this scribe on Wednesday that "Consumers Lucky Draw" would offer expensive prizes on submitting invoices/documented receipts of purchases, shopping and dining at restaurants/hotels etc.
The scheme would offer grand prizes to attract maximum consumers to particulate in the "Consumers Lucky Draw". The FBR has finalised the plan and submitted to the Ministry of Finance for final approval. The FBR has taken a U-turn for the documentation of the economy by introducing such kind of schemes beside enforcement and legal actions against the non-compliant businessmen.
According to the salient features of the "Consumers Lucky Draw" the government would allocate huge budget for the scheme to pay cash prices on monthly or quarterly basis. The scheme would play an important role in the documentation of economy by encouraging tax culture where receipts would be demanded from shop, retail outlets, shopping malls, hotels and restaurants etc.
The consumers would submit the purchase receipts, sale invoices and other receipts to the FBR for participation in the draw. The FBR will offer a wide range of prices to the participants and use these invoices/receipts to broaden the tax-base. A grand function would be held at the FBR on regular basis to announce names of the winners. In this way, the FBR will be able to track all documented and undocumented business units and establishments with the help of data available with the general public.
The FBR would also be able to document persons making purchases on credit cards and those having receipts of huge purchases, but operating out of the tax net. So far, it has not been decided whether the FBR would seek National Tax Number (NTN), Computerised National Identity Card Number (CNIC), residential address or telephone number of the consumer taking participation in the "Consumers Lucky Draw" for identification purposes.
Sources said that the "Consumers Lucky Draw" would attract maximum consumers through awareness campaign under the drive to document the economy. The FBR has offered different amnesty schemes in the past for the regularisation of un-disclosed income and assets, but such schemes have been failed.
It is important to mention that the FBR has not been able to bring rich class into the tax net and enforcement actions like arrest of defaulters has been withdrawn by the board. The new strategy to offer schemes of lucky draw seemed to be a successful attempt to encourage people to operate under the tax net.