FBR to introduce automated system to ensure tax collection by CMO,s

In order to monitor the collection of taxes with respect to exponential transactions of cellular operators, the Federal Tax Ombudsman of Pakistan has issued orders to introduce an automated system.

The order has been issued in response to a complaint that was filed against a cellular operator for evasion of tax. As a result of this complaint, FTO noted that an automated system is the need of the time to monitor the tax-related issues with respect to exponential transactions of cellular operators.

Moreover, FTO has observed that FBR lacks to form an efficient policy to handle the matter of evasion of taxes and there is no automatic system that can monitor the tax related concerns.

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Therefore, FTO has suggested that a suitable proposal for the amendment in laws is also required so as to implement an effective automated system through mutual agreement of Pakistan Telecommunication Authority (PTA), State Bank of Pakistan and cellular companies.

The inefficient monitoring and absence of an automated system regarding tax-related transactions of CMO’s is a cause of loss of government’s revenue and it requires the exercise of jurisdiction under Section 9(1) of the FTO Ordinance 2000, said FTO.

Therefore, FTO office has asked the FBR to report on the progress of the above-mentioned matter within 90 days.