‘FBR should not devise economic policies’

PSMA chairman says body should stick to tax collection and revenue generation.

KARACHI:

Pakistan Soap Manufacturers Association (PSMA) Chairman Tanvir Ahmad Sufi said that the Federal Board of Revenue (FBR) should stick to tax collection and revenue generation and not be allowed to devise economic policies.

During his visit as PSMA leader to Karachi Chamber of Commerce and Industry (KCCI), he said FBR should rather focus on ways to further enhance the low tax base, whereas an independent body should be formed to devise various economic policies including the federal budget.

Sufi sought KCCI’s assistance in convincing the government to form the proposed independent body, responsible for reviewing the overall business climate with various economic indicators.

“This independent body should comprise all stakeholders including experts, economists, intellectuals, prominent businessmen and industrialists along with representatives of Chambers of Commerce and Industry. Implementing this would create an enabling atmosphere for all, besides ensuring progress and prosperity for the country,” he said.

Talking on the obsolete tax policy he said, “Old tax collection measures cannot be applied now. Those policies give enough room for tax evasion and corruption.”



“Current FBR policies are focused more on revenue generation. Government is ignoring the needs of the industries. The negative consequence of overburdening the existing taxpayers is also neglected.”

President KCCI Abdullah Zaki said that though the government has formed a Business Advisory Council to take the business community on board in the decision making process, it needs to be made more effective. It must ensure the decisions taken, consensus reached and timely implementation.

“Complex procedures in filing tax returns need to be simplified and it is high time that the FBR must come up with a one-window automated facility for the entire tax collection process which would not only help in minimising the problems being faced by taxpayers but will also effectively deal with widespread corruption,” Abdullah added.

Lastly, Zaki stressed the need for coordinated efforts and extended full support and cooperation to PSMA delegation in dealing with various issues.

Published in The Express Tribune, August 20^th, 2014.

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