Much ado about nothing

A lot many things can be done with maximum ease, provided the doer has the will but I think the situation is the other way round. Despite all resources and all the abilities, the government has yet not come up with a viable solution to the economic challenges being faced by the country and the situation is continuously worsening with every passing day.
I have quite a few simple proposals acting on which certain issues at hand can definitely be tackled without much ado. At the very outset, I would suggest that the present regime should wholeheartedly concentrate on ensuring uninterrupted and cheaper supply of electricity and for the purpose the President and the Prime Minister should seek the help of technocrats to win a consensus from all the federating units. Because in my opinion no methodology would work in the presence of the massive electricity shortage therefore all energies should spent in this direction.
Then comes political harmony, the ongoing tug of war among politicians is causing undue damage to the country. All the time we see politicians blaming each other for one or the other reason. This practice should be stopped immediately in the larger interests of the country. Coming to revenue collection, I suggest that if the present regime makes the following things mandatory for starting new business in Pakistan, the tax-to-GDP ratio would get a considerable jump. There should be no probe for investment if made in industry, especially in the corporate sector. This will give direction to money wasted in non-productive channels and if it is invested in the productive industrial sector, it would create more jobs and more revenue.
Every business entity, engaged in any business or in any other economic activity, must be registered with any trade body or chamber, under the Trade Organisation Ordinance, 2007. So automatically every business entity will have to have a National Tax Number and to file its tax return/statement regularly to renew its membership with trade body. Government authorities should check only the membership of the trade body then we will not need any controversial Reformed General Sales Tax (RGST).
Rationalisation of withholding tax regime: A major portion of the Federal Board of Revenue (FBR) targets is being met through Withholding Tax collections. The Withholding Tax agent needs to hire and maintain technical staff for Withholding Tax deduction, deposit it into banks and for filing its tax returns. Furthermore, they have to maintain tax record separately. WHT agents have to bear all the expenses for this entire WHT collection/deposit exercise, being done on behalf of the FBR.
To meet these expenses incurred thereon, it is proposed that the Government of Pakistan should pay a certain percentage of WHT collection to these agents. This will encourage them to do WHT collection working more efficiently. Rationalisation of import tax/duty: In this regard, it is proposed that there should be a complete ban on import of any item produced or can be produced locally. Every item which is raw material for domestic industry should be free from all types of import taxes and duties. To encourage local production, higher rate of taxes and duties should be imposed on the import of finished or semi-finished goods.
To encourage domestic poultry sector, the following duty/tax imported poultry and poultry products are proposed. In Poultry, General Parent Stock is basic seed/raw material for the poultry sector should be allowed its import as duty-free instead of 5% duty, being charged presently.
To impose 25% duty on the import of broiler parent stock or hatching eggs to produce broiler parent stock day-old chicks. To impose 50% duty on the import of broiler day-old chicks or hatching eggs to produce broiler day-old chicks.
To impose 100% duty on the import of all kind of chicken meat frozen, processed or further processed. Rationalisation of turnover tax: Government of Pakistan has increased turnover tax from 0.5% to 1% which is very high and unjustified. It is proposed that if it is not brought back to zero per cent then it should be the final discharge of tax liability. Then there should be no requirement for further checking or adjusting the record of the business entity. Sales tax regime: There should be no RGST on any food item and their raw materials and pharmaceutical item and their raw materials. There should be no refund system of GST. It should be only 1% and that's all.
(Th writer is Former chairman, Pakistan Poultry Association, former senior vice president.)