Businessmen propose tax compliance strategy

LAHORE:

The Lahore Chamber of Commerce and Industry (LCCI) has welcomed the government's announcement to combat large-scale tax evasion, as revealed by Finance Minister Muhammad Aurangzeb and Federal Board of Revenue (FBR) Chairman Rashid Langrial at a recent press conference.

They blamed Pakistan's top 5% earners for evading an estimated Rs1.6 trillion worth of taxes annually.

In a statement, LCCI President Mian Abuzar Shad and other senior leaders, while appreciating the move to tackle tax evasion, stressed the need for a comprehensive approach and a dual strategy including targeting tax evaders while rewarding and motivating taxpayers who were complying with their obligations.

"LCCI welcomes the action against wealthy tax evaders, who are depriving the nation of its rightful revenue. However, it is equally important to incentivise and support honest taxpayers, who contribute to the nation's growth. Recognising and rewarding them will foster a culture of compliance and fairness," the statement quoted them as saying.

Elaborating, they said the reward system for compliant taxpayers could include tax reduction, public recognition and business support programmes to encourage continuous compliance. Additionally, National Tax Compliance Awards could be announced to honour outstanding contributors.

The business leaders advocated for including untapped sectors and individuals who were earning taxable income but stayed outside of formal tax system. Simplifying tax registration and filing processes through digital platforms will encourage more individuals and businesses to enter tax net.