All Pakistan Anjuman-e-Tajiran (APAT) has issued directives to all its members in all districts across the country to display their National Tax Numbers prominently at their outlets, so that traders who have no NTNs are encouraged to register with the tax department.
According to the press statement issued by APAT in a letter to Chairman Ali Arshad Hakeem, the APAT central general secretary Naeem Mir, appreciating the FBR's three-year plan of a significant reduction in sales tax rate from 16 to 10 per cent, corporate income tax 35 to 30 per cent and the tax rate for AOPs and individuals to a lower level, said that it was the right step in the right direction to enhance the tax net.
He said that the department's aim of widening the tax base with an addition of another 4 million people in the tax net would also provide major relief to the existing taxpayers. Naeem Mir claimed that Pakistani businessmen have been on top in Asia in paying taxes but the unequal system of taxation encouraged tax evaders instead of increasing revenue.
It was unfortunate that citizens living below the poverty line were being forced to pay sales tax on kitchen items, he said and added that the government should reduce the indirect tax ratio to 30 per cent and the direct tax ratio should be enhanced to 70 per cent to control inflation. He also called for the elimination of the Petroleum Development Levy and gas surcharges to keep inflation in control. He asked the government to stop charging fuel adjustment surcharge and implement the orders of the Islamabad High Court in spirit.
He said that at least 3 million traders would get NTN numbers for registering with the Chambers of Small Traders, significantly benefiting the national exchequer. The FBR should join hands with the business community for the early establishment of the Chambers of Small Traders across Pakistan, as the present Chamber of Commerce and Industry does little to enhance tax collection.
He said that the tax-to-GDP ratio could be improved to 10 per cent if the agri tax is brought into the tax net. Criticising the bogus refund claims, he suggested that dishonest tax officials be brought to trial in special courts. Flaying the customs' present system of V-box, he observed that it was delaying the clearance of shipments by up to 40 days and importers had to pay huge money in the shape of demurrage due to this delay. The FBR should conduct capacity building of the Customs staff and install such a system which could clear the consignment within a week. "If the e-system fails to clear the consignment in seven days, no demurrage should be charged by the importers," he suggested.
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