OICCI recommends broadening of tax base
Foreign investors suggest mandatory documentation of all economic activity.
KARACHI:
The Overseas Investors Chamber of Commerce and Industry (OICCI) has reiterated the need to document all sectors of the economy in its taxation proposals for the upcoming budget. The OICCI’s Taxation Proposals 2012-13 have been formulated to provide guidelines in broadening the tax base and eradicating tax evasion in the country.
“OICCI’s budget proposals are aimed at broadening the tax base, providing incentive to the honest tax payers and, above all, enhancing documentation of the economy,” said Humayun Bashir, president OICCI.
The OICCI has recommended that all legal entities – including individuals, association of persons, corporations and non-governmental and not-for-profit organisations – file annual tax returns and wealth statements, irrespective of source of income, if total annual income is in excess of the government approved threshold of Rs350,000. If the earned income falls under the exempt category, then exemption may be claimed separately.
The OICCI has further recommended that, subject to legal provisions, the Federal Board of Revenue (FBR) should obtain details of all customers of financial institutions whose investments exceed a certain threshold during the year. It has been suggested that the FBR use Nadra and other databases available to identify potential taxpayers. The FBR should also regularly interact with tax and administrative experts to determine additional measures required for enlarging the tax net, the report says.
Bashir said that the OICCI is an important stakeholder in Pakistan’s economy, with membership of 189 foreign investors belonging to leading multinationals from 33 countries. He hoped, therefore, that due consideration will be given to OICCI taxation proposals; which he says are progressive and aim distributing the burden of taxation proportionately on all segments of the society.
Published in The Express Tribune, March 15th, 2012.
The Overseas Investors Chamber of Commerce and Industry (OICCI) has reiterated the need to document all sectors of the economy in its taxation proposals for the upcoming budget. The OICCI’s Taxation Proposals 2012-13 have been formulated to provide guidelines in broadening the tax base and eradicating tax evasion in the country.
“OICCI’s budget proposals are aimed at broadening the tax base, providing incentive to the honest tax payers and, above all, enhancing documentation of the economy,” said Humayun Bashir, president OICCI.
The OICCI has recommended that all legal entities – including individuals, association of persons, corporations and non-governmental and not-for-profit organisations – file annual tax returns and wealth statements, irrespective of source of income, if total annual income is in excess of the government approved threshold of Rs350,000. If the earned income falls under the exempt category, then exemption may be claimed separately.
The OICCI has further recommended that, subject to legal provisions, the Federal Board of Revenue (FBR) should obtain details of all customers of financial institutions whose investments exceed a certain threshold during the year. It has been suggested that the FBR use Nadra and other databases available to identify potential taxpayers. The FBR should also regularly interact with tax and administrative experts to determine additional measures required for enlarging the tax net, the report says.
Bashir said that the OICCI is an important stakeholder in Pakistan’s economy, with membership of 189 foreign investors belonging to leading multinationals from 33 countries. He hoped, therefore, that due consideration will be given to OICCI taxation proposals; which he says are progressive and aim distributing the burden of taxation proportionately on all segments of the society.
Published in The Express Tribune, March 15th, 2012.