ISLAMABAD (Eshfak Mughal):- The Federal Board of Revenue (FBR) has decided to capture supply chain data and other business deals of unregistered wholesalers, distributors, manufacturers and importers to bring then in tax net after starting campaign for installation of Point of Sale System at outlets of big retailers.
The FBR has integrated almost 1150 retailers with the POS system and efforts are continued to bring the retailers in to tax net.
The FBR has formulated 13 different Terms of References (TORs) of the “Sub-Committee on Integration of Businesses”, in the country.
The mandate of the sub-committee would be to identify wholesalers, distributors, small, medium and large manufacturers, importers who potentially have taxable income but neither, they have been brought into the tax base of Pakistan nor being part of the tax base but are evading and suppressing taxes and invoices.
The Sub-Committee would also define the potential target market and quatify the size of the target market. It will also develop a Business Plan comprising of budget pertaining to project plan, human, IT and infrastructure resources required to bring the potential target market into the tax base to generate incremental tax revenue.
The body will also obtain legal and regulatory protection, facilitation and support of stakeholders in order to achieve the objective in collaboration and support of the FBR.
The Business Integration committee will define policy and rules for a licensing framework for appointment of intermediaries who will coordinate and facilitate the integration of supply chain to capture and report all sales transactions. The committee will define policy and rules for tha licensing framework for appointment of intermediaries who will coordinate and facilitate the integration of supply chain to capture and report all sales transactions.
The Committee will also coordinate with various associations and trade bodies to facilitate the integration of supply chains. It will also controlling, monitoring and implementation of supply chain capture integration program in coordination with IRS Operation.
The Committee will also develop a correlation between invoice and E-payments for the purpose of audit in coordination with necessary stakeholders including but not limited to State Bank of Pakistan.
The TORs say that the body will leverage software to capture the entire supply chain from manufacturing, distributor, wholesaler, retailer and customers to capture transactions, WHT information and use the develop database to capture potential taxpayers.
The body will also leverage data analytics to capture sales tax demand on the input and output at each stage of supply chain from manufacturing to end consumer, thereby bringing unregistered distributors, and retailers into tax net.
It will also develop organizational structure required to deliver on the above TORs based on size of potential target market, physical dispersion of potential target market and committed time line for achieving TORs. Develop the costs associated with recruitment, third party agreements or consultancy arrangements required to acquire the desired human resource.
The committee will be authorized to determine the infrastructure in terms of premises, furniture, equipment, rent, lease, renovation, internal layout-related costs. It will also determine IT-related resources required in terms of hardware, software, bandwidth, storage along with financial cost and time lines of delivery.