Budget proposal: Govt urged to cut tax rates, expand tax base
High tax rates are the major cause of tax evasion in the country, says Sheikh Amir Waheed
Sheikh Amir Waheed. PHOTO: ICCI
ISLAMABAD:
Islamabad Chamber of Commerce and Industry (ICCI) President Sheikh Amir Waheed said that high tax rates are the major cause of tax evasion in the country. He emphasised that in the forthcoming federal budget, the government should cut rates that would help in expanding the tax base, improve the tax-to-GDP ratio and enhance revenue.
Waheed said that the government had imposed 3% super tax on income of Rs500 million and above, as well as 4% super tax on income of banking companies in 2015 that was extended in 2016 and 2017. He stressed that in the coming budget, the government should abolish it.
He said 17% sales tax in Pakistan was among the highest in the region that has put extra burden on the common man and enhanced the cost of doing business in the country. In the next budget, the government should reduce GST to single digit level to provide relief, he added.
Published in The Express Tribune, March 28th, 2018.
Islamabad Chamber of Commerce and Industry (ICCI) President Sheikh Amir Waheed said that high tax rates are the major cause of tax evasion in the country. He emphasised that in the forthcoming federal budget, the government should cut rates that would help in expanding the tax base, improve the tax-to-GDP ratio and enhance revenue.
Waheed said that the government had imposed 3% super tax on income of Rs500 million and above, as well as 4% super tax on income of banking companies in 2015 that was extended in 2016 and 2017. He stressed that in the coming budget, the government should abolish it.
He said 17% sales tax in Pakistan was among the highest in the region that has put extra burden on the common man and enhanced the cost of doing business in the country. In the next budget, the government should reduce GST to single digit level to provide relief, he added.
Published in The Express Tribune, March 28th, 2018.