Income tax: FPCCI demands uniform tax on rental income

The tax slabs have opened a window for mis-declaration of income, corruption and tax evasion

KARACHI:

The government could earn more revenue from income tax on rental income by adopting a uniform rate of 10%, suggested Zakaria Usman, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

In a statement, Usman demanded that the different slabs introduced in the budget for 2013-14 should be abolished as putting taxpayers in such slabs made the calculations and the overall system complex.

Also, the slabs have opened a window for mis-declaration of income, corruption and tax evasion. According to Usman, the landlords keep the receipts to conceal the actual rental income in a bid to avoid payment of income tax according to the applicable slab.

“Tax cannot be collected by force. Public must pay taxes without fearing about the rates and policies and should not be forced to engage in unnecessary record keeping and complex calculations,” he said.

Published in The Express Tribune, October 21^st, 2014.

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