The Association of Chartered Certified Accountants (Acca) has proposed to the government to reduce corporate tax rate to below 35 percent, as has been done by most of the countries in South Asian region eager to encourage foreign investment, sources said on Saturday.
The Acca has sent budget proposals to the Central Board of Revenue with a view to rationalising taxes, increasing revenue, expanding tax base and giving relief to special people, including widows and senior citizens. The proposals say that special allowances should be given to newly developed companies.
For SMEs and new business setups, lower taxes should be applied as this would encourage them to generate more work opportunities and it would be a great assistance to the country. Acca in its proposals has discussed effects of environmental pollution and suggested that taxation measures should be adopted to deal with environmental problems.
Another recommendation to the CBR is about having a social security system where exemptions of tax should be awarded to special people like widows, single women and senior citizens.
To further discuss taxation measures and its proposals, the Acca will hold a seminar at a hotel here on April 26, wherein, among others, Salman Nabi, CBR Member, Direct Taxes, and Asad Abbas, head of performance and balance sheet management, Standard Chartered Bank, will speak.