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FBR to Collect Withholding Taxes from Mobile Phone Operators on Real-time Basis

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FBR to Collect Withholding Taxes from Mobile Phone Operators on Real-time Basis

A senior tax official revealed that the FBR has decided to collect withholding taxes from cellular operators on real-time basis. In a tender to prevent the indiscretions convoluted in a deferred transfer.

FBR to Collect Withholding Taxes from Mobile Phone Operators on Real-time Basis

“By the mid of September, the mobile phone companies will adopt a procedure for the online tax collection.”

The officer said on condition of secrecy.

Also Read: FBR Received Rs. 43 billion on Account of Withholding Tax During 2014-15

The sources also said that the FBR and phone companies were developing a mechanism to guarantee precision in the count of taxes collected from phone users.

The FBR collected Rs 47.65 billion as withholding income taxes during the fiscal year of 2015/16. As compared with Rs 44.67 billion in the previous fiscal year, presenting a 6.7% growth.

Though the need of an online system originated after the grievances that loopholes in the collection of withholding tax by phone companies were instigating huge losses to national exchequer.

The FBR official said the phone companies decided to offer particulars of the inference against each number. The companies were hesitant to give all the numbers due to security purpose, the official said. The companies were given the time limit of 15 September to forge the dissimilarities.

“The officials from FBR headquarters and representatives of mobile phone companies, Pakistan Revenue Automation (Pvt) Limited and Large Taxpayers Unit Islamabad are involved in the talks to achieve the desired results of real-time collection.”

Said the official.

The Federal Tax Ombudsman (FTO), mentioning the FBR, said the board had competent rules and measures in governing the elusion in the telecom sector. In August last, the FBR also hurled a withholding tax module for the implementation of filing of withholding tax declarations.

The revenue body guaranteed the FTO of its seriousness in solving the problem. In this relative, a meeting between the FBR chairman, Member, Chief Inland Revenue, FTO and other officials was also held.