UTIN to come into effect by next month
Sunday, 26 October 2008
Doulot Akter Mala
The new system of unified taxpayers' identification number (UTIN) is expected to come into effect by next month.
The UTIN is designed to help the national board of revenue (NBR) ensure proper tax collection from bigwigs.
The government in 2007-08 fiscal took the initiative of introducing the system through merger of Taxpayers Identification Number (TIN) and Business Identification Number (BIN).
The new method envisages scrutiny of payment of VAT and income tax and helps plug revenue leakage.
The revenue board has already conducted test run of the system merging 50 TIN and BIN into UTIN, said an official.
The taxmen can easily identify the actual income showed in the tax return if it scrutinises the VAT collected from the business houses, he said.
The revenue board will start the move from the large taxpayers' unit (LTU) under income tax and VAT.
The LTUs, brainchild of the International Monetary Fund (IMF), is assigned to introduce the system.
The LTU has already developed the software and completed its test run. Officials said around 1000 income tax payers and 250 VAT payers will be brought under the UTIN.
There will be a common file for those TIN and BIN holders for compiling the amount of paid tax and VAT from business outlets.
UTIN is only for business houses where an individual taxpayer will have to pay separate tax return for paying Vat and income tax.
Officials said the system will also help the revenue board identify fake and duplicate TIN.
Nearly one third of the TIN holders have not submitted returns as there are around 2.0 million TIN. Only 0.64 million people pay tax.
UTIN will help the revenue board give a correct figure of tax-base through a transparent mechanism, the officials said.
The new system of unified taxpayers' identification number (UTIN) is expected to come into effect by next month.
The UTIN is designed to help the national board of revenue (NBR) ensure proper tax collection from bigwigs.
The government in 2007-08 fiscal took the initiative of introducing the system through merger of Taxpayers Identification Number (TIN) and Business Identification Number (BIN).
The new method envisages scrutiny of payment of VAT and income tax and helps plug revenue leakage.
The revenue board has already conducted test run of the system merging 50 TIN and BIN into UTIN, said an official.
The taxmen can easily identify the actual income showed in the tax return if it scrutinises the VAT collected from the business houses, he said.
The revenue board will start the move from the large taxpayers' unit (LTU) under income tax and VAT.
The LTUs, brainchild of the International Monetary Fund (IMF), is assigned to introduce the system.
The LTU has already developed the software and completed its test run. Officials said around 1000 income tax payers and 250 VAT payers will be brought under the UTIN.
There will be a common file for those TIN and BIN holders for compiling the amount of paid tax and VAT from business outlets.
UTIN is only for business houses where an individual taxpayer will have to pay separate tax return for paying Vat and income tax.
Officials said the system will also help the revenue board identify fake and duplicate TIN.
Nearly one third of the TIN holders have not submitted returns as there are around 2.0 million TIN. Only 0.64 million people pay tax.
UTIN will help the revenue board give a correct figure of tax-base through a transparent mechanism, the officials said.