Imposing more taxes for generating more revenue no solution, says analyst

KARACHI: Ateeq Ur Rehman economic & financial analyst said that imposing more taxes for generating more revenue...
06 Oct, 2024

KARACHI: Ateeq Ur Rehman economic & financial analyst said that imposing more taxes for generating more revenue is not the solution rather the expansion of the tax base should be by incorporating new tax payers and not over burdening the existing tax payers.

Non-Tax Revenue (NTR) is the other source of increasing the revenue like, License Fees, Surplus Profits of Regulatory Bodies, Passport Fees, Petroleum Development levy, Natural gas Development Surcharge, Cellular Mobile Operators Fees, Optic Fiber Cable License Fees, Dividends, Mark-Ups and others.

Attracting investments in Agriculture, Oil & Gas, Mining, Fintech, Equipment, Transfer of Technology, Pharmaceuticals, Maritime should be priority.

Predominantly and largely by inviting land lock countries to boost facilities of our ports.

Pakistan’s Blue Economy can generate over US$100 billion, which had not been used up to its full potential. Incorporating blue economy in the national economy is of utmost importance for a country like Pakistan. Pakistan’s coastline of 1001km is home to different species of fishes, marine animals, plants and mineral resources, renewable energy, etc.

The development of economic and industrial zones, import substitution and value added industries are eminent for the growth of revenue of our country.

Acquiring and complying with international certification would go a long way solving our revenue deficit problems by generating “Produce of Pakistan and Made in Pakistan”.

The FBR so far-fetched Rs2556 billion against the target of Rs2652 billion, a shortfall of Rs96 billion in first quarter (July to September), thus facing a gigantic task for achieving highly ambitious tax collection target of Rs12913 billion for the current fiscal year.

Moreover it has been a challenging situation to achieve growth in revenue close to 40% during remaining 3 quarters (October to June) of the current fiscal year having IMF Pressures.

Maybe government would have to consider taking additional revenue measures during the current year whereas growth rate is declining due to imposition of more taxes.

Exporters and other businesses are hard hit by massive increase in electricity and other energy prices, withdrawing subsidies without compensation, high interest rate, declining the benefits of exchange rate, etc.

Copyright Business Recorder, 2024

Read Comments