'Corruption is hindering revenue generation': businesspeople reject Trade Organisation Act 2013

Presidents of All Pakistan Chambers of Commerce and Industries (APPCCI) on Tuesday rejected the Trade Organisation Act of 2013, accusing tax officials of colluding with unscrupulous elements in promoting corruption, insisting that it was a hindering revenue generation in a major way and blocking efforts for broadening the tax base.
After the conclusion of the two-day-long conference organised by the coalition of the chambers of commerce, president of Rawalpindi Chamber of Commerce and Industries Manzar Khurshid, informed media persons that the Bhurban Declaration, envisaging steps to kick-start the economy, had been unanimously adopted.
Rejecting the Trade Organisation Act of 2013, he said that traders and their representatives should be consulted before making any business-related law. He said that the move should be reversed and the business community should be taken on board to devise a national trade policy, otherwise traders would not file their tax returns.
He said that the government should restructure State-Owned Enterprises or close down all such government-run entities to avoid huge losses to the national exchequer. Stressing the need to appoint members on board of directors in accordance with international best practices, he said that private sector representatives should be appointed without any government interference. The management boards, he said, should be fully empowered to appoint professional CEOs and other management teams for SOEs.
Appreciating draft rules for SOEs issued by the Securities and Exchange Commission of Pakistan (SECP), he said that they would help improve the performance of such government-run entities. He was accompanied by Presidents of 25 chambers of commerce and industries from all over the country, including Karachi, Lahore, Faisalabad, Sialkot, Quetta, KPK and the Federation of Chambers of Commerce & Industries.
In response to a query on their contribution in taxes, the president of RCCI said that there was a lot of potential for generating additional taxes, but the collusion of tax officers in corruption was hampering FBR's revenue collection. SRO culture, smuggling, Afghan Transit Trade, frequent changes in tax laws and tax machinery's corruption were major factors resulting in low revenue collection. However, businessmen and traders were ready to assist the FBR to expand the tax base.
Criticising the government, he said that the country's debt was so high that "we do not even know the exact extent of the existing debt". When asked why the business community failed to display their National Tax Numbers (NTNs) outside their premises, he accused the FBR of delays in issuance of NTNs. He requested the government to provide a level plying field, arresting the trend of diverting potential investment to Bangladesh and Malaysia. He said that they held consultations with almost all political parties, urging all parties, including the caretaker set up, to take the business community on board before intiating any economic reform.
"Politicians cannot survive without the support of the business community...this is why the business community shared views with around 95 percent of political parties," he maintained. According to the RCCI President, representatives of all chambers had pledged to support the political party in the upcoming elections which had a clear and positive national economic agenda, outlining a viable plan to eliminate unemployment and poverty.
Urging the government to adopt a long-term policy which should be followed by all successive governments, he said that businessmen were concerned over mounting corruption in different national institutions, including PIA, Railways, Wapda, Pakistan Steel Mills, Utility Stores and NHA. He said that the government should cut the size of its cabinet to achieve targets of good governance.
Expressing concern over the worsening law and order situation, he said that businessmen were particularly concerned over the security situation in Khyber Pakhtunkhwa, Balochistan and Karachi. He said that the government should initiate talks with all stakeholders to improve the law and order situation, necessary for attracting local and foreign investment. At the end of the conference, representatives of the business community announced a nine-point declaration, calling for national economic reforms.
According to the declaration, all political parties were requested to highlight their economic plans in their election manifestoes. All long-term economic policies should be given constitutional protection and the business community should be consulted before approving any economic policy.
Stressing the need for a business-friendly environment, participants urged the State Bank to initiate loans in 'red zones'. The declaration called for devising a workable mechanism for building dams and also urged the government to discuss and settle all water disputes with neighbouring countries in the light of the 1961 Indus Water Treaty.