The government has planned to restructure the corporate sector in the Federal Budget 2007-08. Mukhtar Ahmed Gondal, director general, Large Taxpayers Unit (LTU), Karachi, stated this at post-budget seminar organised by Income Tax Bar Association here on Tuesday.
He said the government had taken measure to consolidate the corporate sector by introducing the concept of holding companies. He said that revenue collection in the head of direct taxes measures any emerging economy and in Pakistan this head having 42 percent of total collection.
The Central Board of Revenue (CBR) considering the growth of direct taxes had increased the budgetary target from Rs 265 billion to Rs 318 billion in the current fiscal year, he said, adding this would be achieved easily. Gondal said the CBR had conceived and implemented the reform process four years earlier and now its positive results could be seen.
The reform policy was introduced to make responsible the taxpayers, tax officials and other stakeholders to increase tax compliance. He said the annual growth in revenue collection had proven that responsibility had been shifted to taxpayers and they realised their contribution was necessary for country''s economic growth.
He said that new laws in the budget were introduced to remove anomalies for providing maximum relief to taxpayers and impediments in the way of economic growth. He said that seventh schedule was proposed in the Finance Bill for banking companies, which would provide laws related to this sector at one place.