The National Board of Revenue (NBR) is looking forward to conducting ‘Risk Analysis’ on passengers and commodities that arrive at the international airports of the country to boost revenue collection. The exchequer wants to introduce ‘Advance Passenger Information’ (API) and ‘Pre Arrival Processing’ (PAP) from next fiscal year.
The central tax administration authority, in this connection, has written to the finance ministry. Under these initiatives, before the passengers arrive, relevant information will be sought from the airliner companies, ‘Passenger Name Record’ (PNM) will also be introduced. Beside, green channel and red channel at the airport for international flight passengers will be operational by next fiscal year. Similar system will be applicable for commodities too. To this end, NBR has drafted a legal framework.
The taxation process of commodities will complete before exporting or importing through the port. This will help increase revenue collection and will help to unload commodities at the earliest. To increase revenue collection, NBR is easing VAT management system. Besides, under the ‘VAT online Project’ program the authority is establishing ‘VAT On-line Service Centre’ and also introducing E-learning and ‘VAT Help Line’. From now on, any kind of assistance regarding VAT can be acquired by dialing 1655.
According to the estimated figure, the total tax revenue target will be 11.8 percent of GDP while the NBR revenue will be 11.3 percent. Meanwhile, NBR sources said income tax will be the highest revenue collecting regime in the new fiscal as the government earlier had taken a plan to increase income tax revenue to 50 percent of the entire revenue by 2021.
The NBR has already taken several moves for the expansion of the net of this direct tax, including enhancing its infrastructural capacity. The VAT and Supplementary Duty Act-2012 will be enforced from July next and the government, for ensuring revenue growth, is set to expand the purview of VAT instead of increasing its rates, which will be reflected on the finance minister’s budget speech, sources said.