FBR bringing Car Dealers, Showrooms and Others in the Tax Net
To have a boost in revenue, FBR is planning to bring auto-sector and all associated businesses into ta net that includes spare parts dealers, showrooms, workshops, painters, denters, and vehicle services centers.
The step highlights that auto sector is the new target by the government to increase revenue and stabilize economy by increasing the tax net.
Reports mentioned, the Regional Tax Office did a collection of information regarding revenue of multiple workstations, large service stations, official car dealers, company designated centers and showrooms. Based on this information, the department got the estimation of overall revenue of these entities and issued notice to 312 of them in Karachi.
As per the insists shared by BTB, most of the dealers and businessmen in auto-sector are qualified to be in tax net and are active tax payers as well.
The darker side of the picture shows that they are illegally avoiding taxes through multiple tricks that actually gained the attention of officers from regional zones. Considering the situation, they are trying to get them into tax net. Moreover, there is no mention of fine in the notification for defaulters yet.
It will definitely be a good step to expand tax net and have more revenue by the end of the fiscal year. While it can backfire and cause a common person to face immense pressure on pocket. Increased taxes will result an increase in prices by the past sellers, service stations, dealers and workshops as well. As it, we witnessed a massive increase in prices by the local car assemblers multiple times in this year.