KARACHI:
President Muhammad Shakeel Munir, Islamabad Chamber of Commerce and Industry (ICCI), stated that the incumbent government should focus on taking strong measures to create a business-friendly tax environment in the country.
On Tuesday, he spoke to the Islamabad Chamber of Commerce and Industry to highlight the fact that excessive tax demands, taxpayer notices, and recovery proceedings have not resulted in an increase in tax revenue.
“The coercive tax measures and imposition of high tax rates have always promoted tax evasion and it is high time that the government pays attention towards reducing high tax rates in the forthcoming budget,” said Munir. “This will encourage voluntary tax compliance and expand tax base.”
He stated that the environment for fear and harassment in the business community was created by over-enforcement of laws and regulations.
“This approach should be changed to promotion of culture of voluntary tax compliance which would prove highly effective in increasing tax collection,” he said.
He also stressed that the government should offer good tax incentives to the business community in the upcoming budget in order to increase its confidence and accelerate the pace of business activity in the country.
He called for reforms to the tax system. He cited the fact that 52% of tax collection was made at the import stage, which was not wise.
Jamshaid Akhtar Sheikh, Senior Vice President of ICCI, and Vice President Muhammad Faheem Khan stated that Pakistan must promote industrialization to create new jobs for youth and improve exports.
“To achieve this goal, the government must reduce customs duty and taxes on import of industrial machinery and technology in the forthcoming budget,” they said.
They suggested that import duties on machinery and technology be cut and that it would encourage the production of value-added products by helping industries upgrade their products. This would lead to significant export increases.
Raja Safeer, ex-vice president of ICCI Ashfaq Hussain Chatha, and Baser Daud, former president, former senior vice president Muhammad Naveed Malik were also present.
Published in The Express Tribune, April 13, 2009.Th, 2022.
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