Minister of State for Revenue, Haroon Akhtar, warned the tax-evaders on Monday of a tougher policy with an assured punishment. "We will not tolerate tax-evasion," he said at a pre-budget 2018-19 seminar under the aegis of ICAP at a hotel. However, he also assured the aggrieved taxpayers of solving their problems at all levels.
He lamented there is a massive tax evasion; hence plans are ahead to bring non-filers into the tax net to scale up revenue growth and underpin the economy. He vowed government would toughen plans for non-tax-filers.
Haroon said plans to bring down the sales tax to a single digit, seven percent, failed to make headway, as none agreed to such a big drop in the GST including the IMF. He stressed on need for economic growth through plans that could push manufacturing to a sustainable growth with exports.
However, he admitted government failed to manage its current account that plunged into deficit. He said five percent policy rate was a reason for the economic tumble. He said incumbent government also continues to have current account problem; although government inherits it from the predecessor.
"Despite political upheavals in addition to gas and electricity load-shedding, government made efforts to keep the inflation rate below 4 percent and GDP close to 6 percent," he said, adding that exports were much lower than the imports. He said FTAs particularly with China did not help the country increase its exports for unbridled cheaper imports.
Chairman of ICAP Committee on Fiscal Laws, Ashfaq Yousuf Tola, offered the government assistance in devising plans to curb tax-evasion and end the country's tax-to-GDP crisis.
"ICAP is ready to coordinate with the FBR to boost up national economy," he offered, asking the government to revisit its policies that are hampering tax growth.
Asif Haroon, Member of the Committee on Fiscal Laws, in his presentation on policy issues, said government has an overwhelming reliance on indirect taxes. He advised FBR to tax those manufacturers who make and earn by using national resources and infrastructure. He suggested government should help investors and manufactures with long-term policies to scale back imports.
He also sought a plan from the government to end under-invoicing with placing a structural reform to pull down revenue losses. He said section 65A should be restored with certain amendments to encourage the exporters.
Member of the Committee on Fiscal Laws, Haider Ali Patel, pointed out some 25 issues of the direct taxes. He asked the tax authority to provide taxpayers online access to the needed information especially goods' declaration etc.
Asif Kasbati, Member of Committee on Fiscal Laws, said country has been placed 151st in the world's index on ease of business. He said industrialization is the solution to increase job opportunities and tax collection for the nation.
Comments
Comments are closed.