Elite-force RAB has requested the revenue board to 'include the VAT Act of 1991 in the schedule of the Mobile Court Act-2009' to facilitate launching of drive against VAT evaders through mobile-courts, headed by the RAB executive magistrates, according to official sources.
Director-General of the Rapid Action Battalion (RAB) Benazir Ahmed in a letter to the NBR chairman made the proposal for inclusion of the law so that mobile court could move against VAT (value added tax) evasion.
"There are allegations of evasion over collected VAT that some posh businesses and shopping malls collect from the consumers (but do not deposit)," the sources quoted the letter as stating.
Also, some businesses are not complying with the NBR order on mandatory installation of electronic cash register (ECR) or point of sale (POS) in their outlets, the RAB chief pointed out.
Government is being deprived of its tax revenue due to such non-compliance, he added.
Executive magistrates of the RAB have successfully operated mobile court against food adulterers, fake doctors, clinics and diagnostic centres without licence, illegal blood banks, adulterated drugs and cosmetics, wild animal sale and purchase and other offences that are scheduled in the mobile-court law
"VAT law is not included in the mobile court law. For that reason, mobile court cannot launch drive against VAT evasion," the letter wrote.
Mobile-court drive can be conducted in coordination with customs, excise and VAT commissionerate, it said.
The RAB noted that, through such operation, consumers' rights would be protected alongside making businesses aware of their duties to collect VAT for the public exchequer.
Talking to the FE, a senior VAT official said mobile court against VAT evasion may make the businesses panicky.
"Civil court handles the tax-evasion cases. It is not a criminal offence," he said.
But VAT Act 1991 provides for arrest and confiscation of properties in case of VAT evasion and other VAT-related offences in accordance with the Code of Criminal Procedure.
The VAT wing is working for motivating businesses on proper deposition of the tax with the public exchequer, he added.
He expressed the hope that the VAT-collection target for the current fiscal year (FY) would be achieved as VAT officials have intensified drive to find out untapped sectors.
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