The Lahore Chamber of Commerce and Industry, while taking a strong exception to the Federal Board of Revenue for considering withdrawal of Universal Self Assessment Scheme (USAS) in the forthcoming budget, has said that the decision would not only open the floodgates of corruption but would also create atmosphere of distrust between taxpayers and tax officials.
The Universal Self-Assessment Scheme in vogue for the last eight years has been producing remarkable results besides taking the level of confidence between taxpayers and FBR to new highs, said LCCI President Mian Muzaffar Ali in a statement issued here on Monday. "Only because of Self Assessment Scheme, the Federal Board of Revenue could achieve revenue target during all the preceding eight years and rolling back of this scheme means disturbing the revenue collection on the one hand while unnecessary litigation and coercion on the other hand."
He said that the Universal Self Assessment Scheme was introduced after holding long discussions with the business community and surprisingly not a single businessman was consulted in finalising the plan to withdraw the scheme what to talk of trade bodies and Chambers of Commerce in the country. The Universal Self-Assessment Scheme, introduced in line with the World Bank and other donor agencies, was one of the most successful schemes ever introduced in the country. The FBR authorities instead of broadening the tax net to increase the revenue collection was trying to create troubles for the existing tax payers, he said.
The LCCI chief said that it was a matter of grave concern that at the moment when the economy was facing multiple internal and external pressures because of acute shortage of power, high mark-up rates and global economic meltdown, the government tax machinery was evolving methodologies to tighten noose around the neck of the business community. The federal government in general and the newly appointed Chairman of the Federal Board of Revenue should stop the elements in their ranks that are hell bent to earn bad name for the government who otherwise was striving for economic revival.
He said that the current shortfall in revenue collection was not because of Self Assessment Scheme but of sharp cut in demand in international market and as soon as the situation returns to normalcy the revenue collection would hopefully even surpass the target. The universal self-assessment scheme (USAS) introduced in 2001 has minimised the taxpayer and the tax official interface and has brought a robust growth in voluntary payment of income tax, he added. The objective of the government to realise more revenue through voluntary compliance by reposing confidence in the taxpayers seems to be largely working, he maintained.