Criticism: FCCI prepares draft on budget proposals
Says government’s low tax collection result of haphazard policy
Says government’s low tax collection result of haphazard policy. PHOTO: BLOOMBERG
FAISALABAD:
Faisalabad Chamber of Commerce and Industry’s (FCCI) Advisor on accounts Hamid Masood suggested that the government needs to strengthen its enforcement capacity and avoid sector-specific exemptions to increase tax revenue.
He highlighted these suggestions during a briefing of the budget proposal draft prepared by FCCI.
According to Masood, the government should tax all sectors without extending any favours. Similarly, in order to enhance revenue, the government should increase the enforcement capacity of the Federal Board of Revenue’s (FBR) field staff.
“At present there is no reliable system for the evaluation of FBR officials. There needs to be proper and regular evaluation of FBR officials’ performance and integrity.”
He added that taxpayers are facing issues while filing their tax returns on FBR’s e-portal.
Regarding policy matters, he said that income tax rate for the corporate sector is highest in the world.
He said that earlier alternative dispute resolution committees were constituted to settle disputes but they have become redundant and need to be made functional in the upcoming budget.
He also pointed out discrepancies in the Voluntary Tax Compliance (VTC) Scheme and said that circulars have been issued to temporarily solve these problems. He proposed constitutional cover for these measures in the next budget.
He said that the rate of general sales tax be brought down from the current level of 17%.
FCCI’s work
Addressing the briefing, FCCI President Chaudhry Muhammad Nawaz said that the chamber was preparing proposals for several years which will be presented to the FBR for consideration in the upcoming federal budget.
He said that FCCI invited proposals and suggestions from all sectors of the economy as well as various trade associations affiliated with the chamber.
Published in The Express Tribune, April 7th, 2016.
Faisalabad Chamber of Commerce and Industry’s (FCCI) Advisor on accounts Hamid Masood suggested that the government needs to strengthen its enforcement capacity and avoid sector-specific exemptions to increase tax revenue.
He highlighted these suggestions during a briefing of the budget proposal draft prepared by FCCI.
According to Masood, the government should tax all sectors without extending any favours. Similarly, in order to enhance revenue, the government should increase the enforcement capacity of the Federal Board of Revenue’s (FBR) field staff.
“At present there is no reliable system for the evaluation of FBR officials. There needs to be proper and regular evaluation of FBR officials’ performance and integrity.”
He added that taxpayers are facing issues while filing their tax returns on FBR’s e-portal.
Regarding policy matters, he said that income tax rate for the corporate sector is highest in the world.
He said that earlier alternative dispute resolution committees were constituted to settle disputes but they have become redundant and need to be made functional in the upcoming budget.
He also pointed out discrepancies in the Voluntary Tax Compliance (VTC) Scheme and said that circulars have been issued to temporarily solve these problems. He proposed constitutional cover for these measures in the next budget.
He said that the rate of general sales tax be brought down from the current level of 17%.
FCCI’s work
Addressing the briefing, FCCI President Chaudhry Muhammad Nawaz said that the chamber was preparing proposals for several years which will be presented to the FBR for consideration in the upcoming federal budget.
He said that FCCI invited proposals and suggestions from all sectors of the economy as well as various trade associations affiliated with the chamber.
Published in The Express Tribune, April 7th, 2016.