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    Thursday, 12 April 2018

    Reforms based taxation system be introduced in the country-Business Community

    MULTAN, April 12th: The business community of South Punjab stressed the need for introducing reforms based Taxation system on ground realities and due consultation process with the stakeholders to ensure result-oriented policies for the businessmen and harmonization in tax system across the country is also a must to get rid of the issue of dual taxation.
    President of Multan Chamber of Commerce & Industry (MCCI)Malik Asrar Ahmed Awan said that though amnesty scheme is good step to bring back out-of-country capital into the country but these cannot be productive until and unless major issues like "withholding tax on banking transactions" exists.
    He said that over the years FBR could not satisfy all its stake holders i.e. the State as well as tax payers with 1.2 million filers out of total population of 210 million fetching hardly revenue collection of 12 to 13% of the GDP and unhappy stakeholders across the board, speaks of FBR's failure so far. It is further repeated from the international ranking of paying taxes, which is at present 172 out of 190 countries of world which indicates very unhappy situation.
    The MCCI President said that neither the existing system is economically neutral, taxpayer friendly, equitable, progressive nor facilitative and supportive to generate healthy business activities for all. Taxation is of course important source of revenue collection but tax policies must be based on the best international practices and universally accepted canons of taxation.
    He said that it is a matter of serious concern that with the existing narrow tax-base, the policy makers instead of revolutionize the tax policy options, seems defendant on the burdening of the existing taxpayers whether corporate, (LSE&SME) salaried, individuals and certain other documented sectors of the economy. He said that repetition of such policy option coupled with unbridled withholding tax regime, tariff structures leading to protectionism and creating hurdles to make in "Pakistan's Agenda", to promote the domestic industry is perhaps the major obstructing and responsible factor for all difficulties be faced on economic front at present.
    MCCI President was of the view that various distortion in the existing tax policies can be removed if the feedback of all the representatives of business organizations is given due consideration by the FBR authorities. It is universally admitted fact that public policy makers can make noticeable difference by linking their mindset to ground realities.

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    Item Reviewed: Reforms based taxation system be introduced in the country-Business Community Rating: 5 Reviewed By: Asqamar