Boosting revenue: ICCI suggests increased direct taxation

ISLAMABAD: Islamabad Chamber of Commerce and Industry called upon the government to focus on increasing the share of direct taxation in the tax structure to mobilise more revenue and strengthen the economy. ICCI Acting President Muhammad Shakeel Munir said Pakistan’s tax revenue, as a percentage of GDP, is the lowest in emerging markets. Pakistan’s direct tax collection has not progressed properly and has remained flat at about 38-39% over the last five years. The rest of the tax revenue is collected through indirect taxation, which is highly regressive in nature and brings more problems for the general public, added the ICCI official. He said even most of the direct tax is collected in indirect mode as withholding tax and advance taxes account for more than 90% of total direct tax collection. He stressed the government to adopt a horizontal tax approach by lowering rates to broaden the net.

Published in The Express Tribune, November 7^th, 2014.

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