Government to impose Rs500 billion new taxes in upcoming budget
Islamabad, May 22, 2016 (PPI-OT):Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt on Sunday expressed concern over plan of the government to impose Rs500 billion new taxes in the upcoming budget. Masses as well as the business community will never accept new taxes as it will open floodgates for corruption and inflation, he said.
Shahid Rasheed Butt said that government should not burden masses, rather it should initiate reforms in the FBR to boost revenue by trillions. The countries that accorded autonomous status to their tax authorities have seen growth of 40 to 120 percent in the collection therefore Pakistan should do the same, he said.
Around one million people file tax return in country while the figure was 1.6 million in the 1990s which indicate increasing distrust among taxpayers which is an incentive for evasion, he said. The veteran business leader said that the number of taxpayers that pay half a million or above as tax in around 35000 who have been focused. These people are targeted through audits, notices and raids which send a very negative message to others.
According to World Bank, a Pakistani industrialist having business sin all four provinces has to pay tax for 95 times while it takes 598 hours per annum to prepare documents. On the other hand businessmen in Singapore have to pay tax for six times in one year while Malaysian businessmen pay tax for 14 times per annum. This is a great disincentive which promotes undocumented economy, he said.
For more information, contact:
Islamabad Chamber of Small Traders and Small Industry
Office No, 9 Block E, Super Market, Islamabad