KARACHI: Federal Board of Revenue Chairman Dr. Muhammad Ashfaq Ahmed has said the withholding tax (WHT) should be levied on income rather than on transactions.
He was addressing at Karachi Chamber of Commerce and Industry (KCCI). Dr. Ashfaq said that he would recommended abolishing further tax. Besides, he said that rationalizing import tax would help in easing inflation.
Pakistan has entered into IMF programs several times. “The frequent loan programs of IMF makes complex policy making for us,” the chairman said.
He said that the revenue collection is 10 per cent of the GDP. On the flip side the expenditure is 20 per cent of the GDP. “We take loans about 8 per cent of the GDP.
The second biggest problem is current account deficit. “We are dependent on imported things. We are spending huge foreign exchange on import of petroleum products,” he said, adding that the import of palm oil is also very large.
He said that the FBR would surpass the current year’s revenue collection target. He attributed the over the target collection to the business community. “The business community performed well,” he added.
The chairman said that the board had received representations on the CNIC. “The condition of CNIC details is on above Rs100,000 payment,” he said.
Muhammad Idrees, President, KCCI said Karachi is financial and commercial hub of Pakistan. The city has collected over Rs1 trillion so far during the current fiscal year. “Traders of this city need special attention,” he said, adding the FBR is sending notices to already compliant taxpayers. He said that despite FBR efforts the tax net remained narrow.
Idrees recommended a fixed tax regime to broaden the tax net. “This regime will increase the tax revenue.”
