Unified tax collection platform on the cards

Minister says new system will encourage citizens to pay taxes

LAHORE: To streamline provincial tax collection and for tax payer’s convenience, the government is planning to introduce a unified tax collection regime across Punjab.

Presiding over a meeting of the Punjab Revenue Authority (PRA) on Sunday, Punjab Finance Minister Makhdoom Hashim Jawan Bakht stressed the need for a single tax collection platform for which various reforms have been initiated.

He highlighted that a special tax management unit is being established at the Punjab finance department to unify tax collection in all provinces. “A unified tax collection system would not only help in streamlining tax collection but will also help and encourage the business community, as well as common citizens, to pay taxes,” he said.

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The government is making efforts for the unification of taxes and harmonising revenue collection in all four provinces. Clarifications will be made on tax-related litigation and general sales tax (GST) on service-related matters, the minister added. He urged the private sector to give its input in making this new system more efficient. New reforms will be introduced where required and all services would be brought under the tax net by balancing the system. Tax exempted services will be made clear, he added.

“A reduction in the withholding tax rate is connected to the registration of businesses with the tax departments,” he said. The minister appreciated the efforts of the provincial government in ease of doing business.

“Tax reforms will increase ease in doing business and improve Pakistan’s ranking in the world,” he said. During the meeting, PRA officials revealed that new standard operating procedures were being evolved while technical staff would be hired for decision making and other important positions.

The minister instructed to issue tax clearance certificates to tax payers along with audit reports. Currently, various government agencies, including the Punjab Revenue Department, the Excise and Taxation Department, town administrations and city developer authorities, are collecting various types of taxes on behalf of the provincial government.