ISLAMABAD: Chambers of Commerce and Industry from all over the country have asked the government to introduce structural reforms in Federal Board of Revenue so that the tax administration can be business-friendly to revive the economy.
This was demanded during a consultative workshop organised by Ministry of Planning, Development and Reforms on “economic revival and growth”.
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One of the representatives said that increase in tax collection is linked to the reforms in tax machinery which must be realised by the government. He further stated that government’s borrowings from the banking system was leaving little credit for the private sector, which is becoming more and more expensive with increase in policy rate. He was of the view that increase in taxes would lessen government reliance on the borrowing and availability of credit to the private sector would contribute to growth.
A representative of Overseas Chamber of Commerce and Industry said that there is a need to bring an end to introducing tax amnesty schemes and granting of exemptions in duties and taxes through Statutory Regulatory Orders (SROs), which have led to the creation of a discriminatory system. He added that this very discriminatory tax system in Pakistan and the tax authorities are chasing a few taxpayers to collect more taxes instead of widening the tax base.
Another representative said that exporters were facing immense difficulties in getting refund or rebate on export and in some cases rebates have not been refunded by the tax authorities for the last two to three years. He said it would be extremely difficult for exporters to increase exports if they do not get rebate/refund. He said the government is required to address the rebate problem faced by exporters so as to increase exports for taking maximum benefit of GSP Plus status.
