LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) urged the government to broaden the tax net by supporting and encouraging the existing taxpayers who are backbone of the economy.
While commenting on the Prime Minister’s remarks while chairing the Federal Cabinet meeting, the LCCI President Mian Tariq Misbah said that this impression is not right that business community is doing tax evasion. He said that business community is the main source of revenue for the government, therefore, no indirect tax should be imposed while taking the plea tax evasion. He said that support to the honest taxpayer will broaden the tax net, help increase revenues of the government and put the country to path of sustainable economic growth besides controlling the inflation.
Mian Tariq Misbah said that high taxation has always been a bone of contention between the government and business community and its amicable resolution will certainly help create business friendly atmosphere in the country.
“Once the tax base is broadened to the required levels, the country will get rid of indirect taxes”, the LCCI President added.
“The Lahore Chamber has always advocated for enhancing the Tax base instead of relying on Indirect Taxes”, the LCCI president added.
He said that the FBR collected around Rs 2,473 Billion in indirect taxes (Custom Duties, Federal Excise and Sales Tax) in 2019-20. The Tax Collection from indirect taxes is around 62% of the total tax collection of FBR of Rs 3,997 Billion in 2019-20. This shows heavy reliance of the Government on indirect taxation. The major portion of indirect Taxes comes from Sales Tax, through which the Government collected Rs 1,596 billion followed by customs duty Rs626 billion, in 2019-20
“This essentially means that instead of adding new Taxpayers, the Government is squeezing the current Taxpayers through import duties on raw materials and machinery which is adding to the cost of doing Business and consequently causing inflation”, Mian Tariq Misbah said.
The LCCI President said that the Advisor to Prime Minister on Commerce has already assured business community that more indirect tax would be avoided.
He said that instead of squeezing the existing taxpayers, government should take measures to broadening the tax net and encourage the existing taxpayers.
