PM calls for widening tax base
Presiding over a meeting of Federal Board of Revenue (FBR) at the PM House on Monday, the prime minister said that the self-respect of tax-payers should be protected and a taxation structure, aimed at enhancing revenues, should be streamlined to promote a culture of voluntary tax payment.
Chairman FBR Ali Arshad Hakeem informed the meeting that tax collection has doubled since 2008 from Rs1 trillion to Rs2 trillion this year.
He added that there was a recorded increase of 22% in the tax revenues this year as compared to the last year.
The meeting was also informed that there were 805,000 registered tax payers of which 260,000 people paid taxes consecutively for three years.
The prime minister said that a large segment of Pakistan’s economy was informal, depriving the national exchequer of its due share and acting as a hindrance in the economic planning and development. The menace of capital flight to tax havens has deprived the country of its true potential for development and progress, he maintained.
PM Ashraf added that the demand for cars, luxury goods and housing reflected the availability of wealth in the country. Unfortunately, the tax base is not commensurate to this phenomenon, he regretted.
The prime minister urged the FBR to plug the leakage of taxes and bring the elite groups of the society into the tax net.
The meeting was attended by Finance Minister Dr Abdul Hafeez Shaikh, Defence Minister Syed Naveed Qamar, Minister for Religious Affairs Syed Khursheed Ahmed, Law Minister Farooq H Naek, Deputy Chairman Planning Commission Dr Nadeemul Haq and other senior officials.
COMMENTS (16)
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In a country like Pakistan where most people do not pay income tax or any other taxes despite making lot of money there should be consumption tax. That is the only way when a person with money (who did not pay taxes) buys luxury items has to pay taxes. In many poor countries there are high taxes on International travel (not students), hotels, luxuries, liquor, and cigarettes. If a tax thief cannot spend his/her money without paying taxes then what good is that money? A family taking a vacation to Europe or America can pay tax on the airfare. Similarly the taxes on the upper class seats can be increased without hurting middle class people.
Could we start by strengthening the enforcement so the current arrears can be collected; it seems the politicians are colluding with the tax evaders by creating new laws without providing the budget to actually collect any of the money owed. It is an old trick used by politicians all over the world and is an insult to the intelligence of the general populace whose lack of erudition should not be construed to mean they are ignorant.
Pakistan has one of the lowest "tax to GDP" ratios in the world due to due the fact that most/all of the Pakistani wealthy are exempt from taxation by laws they have enacted over the years by their influence inside the government.
Don't understand why he is still calling for widening tax base. If he (his govt) was sincere, he would implement such a policy without much fanfare.
he wants children of the same 800k tax payers to pay tax to widen the tax base.
what a stupid logic to show growth in tax revenue. Everyone around the world, governments earns revenue by direct taxes and in Pakistan, general sales tax is the key instrument for govt to raise taxes by merely pushing rates here and there every year.
ET, can you please enlighten us that how much tax he has been paying on legal income and on rental income?
I agree. A moronic statement devoid of any force. Also notice he did not make any recommendations.
@Hasa--seems you work for NADRA The name of the Scheme is: Tax Registration and Enforcement Initiative 2012 and FBR according to some plans to register over 20,00,000 new tax payers in 120 days
So, can you who are so critical of the "the Tax Regularization & Enforcement Scheme" tell me how on earth can the tax base be expanded without getting black money into the tax net? The only way to trap black money is via the Tax Regularization & Enforcement Scheme, else, we will continue as we have done for the past 65 years. Do remember that NADRA data has completely altered tax evaders ability to hide.
Well appreciated.
'self-respect of tax-payers should be protected' - yes but not of tax dodgers ... no amnesty to anyone please.
What a joke! How much tax does he pay himself?
you must pay tax by yourself PM raja pervaiz ashraf
suddenly woken up after 5 years!! i think he is unwell-Election Fever!
So both the Amnesty schemes it looks like are comming