INCOME TAX LAW IN PAKISTAN

Since ancient times, governments have been collecting revenues from their population in different forms. It was necessary in order to meet the different expenditures which the govemments had to incur. The nature and the extent of expenditures incurred by the governments have undergone a lot of changes in the modern world. New sources of collecting the necessary amounts have also been found. Now a state has to spend a lot of money on its defence requirements Development expenditures and expenditures on general public services (schools, hospitals, etc.) have also been increased manifold. New sources of receiving the necessary amounts have also emerged. For example, now a country can receive some resources from another country, or an international organization either as loans or as aids. However, collecting the amounts from its own population still remains as a major and popular source Every country tries to develop its internal resources, because different types of problems are associated with the amounts received from external sources A government tries to generate intemal revenue from different sources. The stability of any state and its economic structure is strongly correlated with the shape and framework of its taxation system.

In our country also, like all other countries of the world, the government receives different types of taxes in order to finance its day-to-day expenses, defence requirements and development projects. These taxes include Customs and Excise Duties, Income Tax, Sales Tax, etc. The government has recently introduced the ‘Zakat’ and ‘Ushr’ system, the income from which is spent only according to the Quranic injunctions.

The Federal Board of Revenue is the highest administrative authority of the Federal Government for the purpose of tax collection in the country. It controls the whole working of tax machinery and matters regarding employees of tax department in the country. The Federal Government appoints the members and the Chairman of the Federal Board of Revenue.

The income tax and sales tax are administered by the Board through Chief Commissioners of Inland Revenue. They are assisted by the Commissioners Inland Revenue, Additional Commissioners Inland Revenue, Deputy Commissioners Inland Revenue, Assistant Commissioners Inland Revenue, Officers of Inland Revenue and Inspectors Inland Revenue. TheDeputy Commissioners Inland Revenue are responsible for ascertaining the

amounts due from the taxpayers in the areas Dfa Ho assigned to them. Responsibility for administering the Customs and Excise duties has

been assigned by the Board to the Collectors of Customs and Central Excise. The Assistant Collectors and Superintendents assist the Collectors. There are separate administrative organizations for land customs and sea customs.