KARACHI: Tax recovery through freezing bank accounts of companies was not correct, said Member Inland Revenue (Policy) Rehmatullah Wazir Khan.
The Member, while addressing a meeting with members of Pakistan Hosiery Manufacturers Association (PHMA), said that massive tax reforms were needed to improve tax collection in the country. He said that people in Pakistan despite living a better life then Indians paid very few taxes compared to the neighbouring country.
Rehmatullah Wazir said in case excess amount was retrieved mistakenly, it should be refunded immediately. He expressed concerns on 14.4 percent decline in exports and said that besides paying refunds, the cost of doing business should be reduced to increase the exports.
The member said refund claims up to Rs5 million would be disbursed this month. He said tax on real estate investment was under consideration for the upcoming budget.
PHMA Chief Coordinator Javed Bilwani said that as per the prime minister’s announcement, zero-rating would be implemented from July 1, 2016 which discouraged exporters from receiving orders to avoid more refund claims. He urged the government to implement the zero-rate tax with immediate effect to avoid further fall in exports.
