A tax-mapping survey of industrial areas of Khyber Pakhtunkhwa conducted by the Directorate General of Intelligence and Investigation Inland Revenue (IR) Federal Board of Revenue (FBR) revealed over 68 operative units and manufacturing companies which are engaged in production/supplies without paying a single penny to the national kitty.
Sources told Business Recorder that the survey has been conducted at Gadoon Amazai Industrial Estate, Industrial Estate Jamrud Road and Small Industrial Estate Hayatabad, Peshawar. A special of the regional directorate Peshawar conducted the tax-mapping survey of these industrial areas and found over 68 manufacturing units, which are fully operative but not registered with the tax department. The manufacturing units belongs to sectors of PVC/HD pipes, marble, shopping bags, fruit juices, bakery products, MBF Board, chip board, looms polyester, spinning mills, plastic scrap crushing, steel re-rolling, edible chips, milk whitener & flavoured milk, biscuits and plastic products, mineral water, carton packaging and medicine bottle caps etc.
These companies are running their businesses without obtaining any registration with the FBR, sources said.
After completion of the tax-mapping survey, DG Intelligence and Investigation IR has directed the regional directorate to start registration process of the said industrial and manufacturing units with the tax department. The Regional Tax Office Peshawar has also started process of registration on the basis of findings of survey carried out by the directorate.
The credit of the whole exercise goes to Director General I&I IR and his team of experts, who taken the initiative to conduct survey despite issues of security in KPK. The tax-mapping survey was conducted taking into account two aspects ie data analysis, tax profiling and physical verification exercise on the spot.
Khawaja Tanveer Ahmed Director General I&I IR supervised and monitored the whole exercise of tax-mapping survey to be conducted in other parts of the country where massive tax evasion is taking place by industrial and commercial units.
Details of the tax-mapping survey disclosed that the DG Intelligence and Investigation IR has conducted the tax-mapping survey through its regional directorate of Peshawar conducted the physical survey of Gadoon Amazai Industrial Estate, Industrial Estate Jamrud Road and Small Industrial Estate Hayatabad, Peshawar on the basis of an analysis of electricity consumption data. The detailed analysis revealed some astonishing results that certain units were either not filing tax returns or filing returns showing "Nil" activity since long despite consumption of electricity in huge quantities.
The special teams of the directorate observed during physical verification that some of the registered companies rented out their premises, but the new establishments or manufacturers did not get themselves registered with the tax department.
Survey teams were directed to visit only new and unknown units. Tax mapping reports have been categorised into three major areas:
Gadoon Amazai Industrial Estate: The tax-mapping survey found units liable to be registered with the income tax and sales tax purposes. There are at least 20 potential/operative companies which are running their businesses without getting themselves registered with the tax department. Most of the units have not even obtained National Tax Numbers (NTNs) for basic registration. Directorate of I&I IR has directed the Regional Tax Office Peshawar to immediately register these units for the purpose of income tax and sales tax.
During the survey, 14 un-registered units have also been detected which are liable to be registered for the purpose of income tax as these units are running their businesses without obtaining NTNs. Keeping in view the apparent small business volume, these units are recommended only for income tax registration.
Industrial Estate Jamrud Road and Small Industrial Estate Hayatabad, Peshawar: The tax-mapping survey detected units liable to be registered with the income tax and sales tax purposes. Over 20 potential units and operative factories have been recommended for registration with the concerned Regional Tax Office for both income tax and sales tax.
In case of units liable to be registered for income tax, 14 un-registered potential taxpayers were also detected during the survey, which are also detected during survey for registration with the income tax department. These units are carrying out their business activities without obtaining NTNs. The agency has asked the RTO Peshawar to proceed with necessary action against the units for registration with the tax department.
It is worth mentioning that a tax survey of the Blue Area, biggest business hub of federal capital was conducted in 2013 which disclosed 1,106 undocumented businesses/outlets and vendors of electronics/ computer/mobiles, etc, without National Tax Numbers (NTNs) out of 2,246 prominent business establishments in that posh area.
Directorate General of Intelligence and Investigation Inland Revenue had conducted this exercise through tax mapping of the Blue Area Islamabad.