Role of Tax Authority

1218 WordsAug 5, 20115 Pages
Tax & Taxation The term 'tax' has been derived from the French word taxe and etymologically, the Latin word taxare is related to the term 'tax', which means 'to charge'. Tax is an obligatory payment in the part of the citizen without the expectation of any direct benefit. Taxation is the obligation of non-penal, yet compulsory transfer of resources from the private to the public sector levied on a basis of predetermined criteria and without reference to specific benefit received. It is one of the major sources of public revenue. There are basically two types of taxes, one is direct and another is indirect tax. Direct tax is a sort of tax the impact /incidents fall back on the person on whom it is imposed. Indirect taxes are those burden…show more content…
The main functions of NBR are:  Collecting direct and indirect taxes;  Formulating and dealing with policy matters including continuous re-appraisal of tax policies and tax laws;  Controlling and supervising direct and indirect tax administration;  Helping in formulating tax policy and processing legislation, preparing tax revenue budget, negotiating agreements relating to tax, donations, debts and general cooperation with foreign governments and international agencies, and also vetting tax clauses of agreements with foreign governments, agencies or institutions;  Performing all the functions and exercising the powers vested in the government by various tax laws, such as disposing of revision application under the customs, excise and VAT laws, and dealing with exemptions from various taxes; and  Helping in preventing smuggling, implementing import and export policies, and formulating policies for domestic industrialization or encouraging foreign direct investment. In its secretariat functions, NBR participates in inter-ministerial deliberations on all economic policies having a taxation bearing. Till 1995, it was the highest appellate authority on matters of assessments of customs duty. A customs, excise and vat appellate tribunal was established in 1995 under the Finance Act 1995 to deal with appeal cases relating to customs, excises and VAT. Role of NBR in Expanding Tax Base The National Board of Revenue (NBR), as the central
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