PM underscores need for widening tax net: PM

ISLAMABAD: Prime Minister Imran Khan, underscoring the need for widening tax net, Tuesday said that reforms in Federal Board of Revenue (FBR) inevitable.

Prime Minister held a meeting in Islamabad with prominent tax experts to discuss the improvement of the taxation system, officials who attended the meeting confirmed.

Chairing a meeting to discuss the revenue collection and enhancing the tax base, PM Imran said that reforming the tax system and to widen tax net were the key points of Pakistan Tehreek-e-Insaf’s (PTI) manifesto. He said that tax reforms were inevitable for durable economic progress and development.

He said that the prevailing taxation system was unjust and added that under the current system, the poor had to pay taxes more than their financial capacity and called for bringing the non-tax payers under the tax net. The prime minister also advocate the reforms in FBR to revive the trust of taxpayers in the taxation system.

Prime Minister, on February 19, had directed FBR to adopt new and reformed system for the tax collection and create ease for expansion of tax net in the country.

“Tax defaulters are enemies of the nation, they should be exposed,” PM Khan had said while chairing a high-level meeting in Islamabad regarding tax collection in Pakistan.

It was discussed that the FBR needs massive restructuring. There is also a need to broaden the tax base and increase tax collection, of which 80 per cent has been collected through withholding taxes.

Officials said that legal procedures need to be simplified to facilitate tax filers and make the system more efficient and transparent.  NADRA is working in coordination with the FBR to identify people who are not paying taxes, it was reported. Around two million non-tax payers will be discovered by the end of April.

Tax reforms, especially the automation of the entire assessment procedure shall be replaced with the current system as discussed in the meeting. Apart from companies, simplified tax laws and returns shall be made for taxpayers.

The Tax Reforms Implementation Commission will make a blueprint of the systematic changes in the FBR structure and tax laws shall be harmonised to facilitate business activity, the officials said. Property valuation needs to be at market value, along with DC rates which need to be at par with the market value, with reduction in duties and taxes on transfers.

FBR officials often harass and blackmail businesses to extort money. It was discussed that this needs to stop because it discourages people to show their income and file tax returns. They fear FBR officials will harass them if their assets are known.

 

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