ISLAMABAD: Chairman Federal Board of Revenue (FBR) Nisar Muhammad Khan said that broadening of tax base was vital for better development of the country and businessmen should cooperate in realizing these goals. He said more tax on non-filers as compared to filers was meant to encourage tax culture in the country and in the forthcoming budget tax rates for non-filers would be further enhanced so that more people could feel temptation to come into the tax net. He was addressing business community at Islamabad Chamber of Commerce and Industry. FBR Member Operations Dr. Muhammad Irshad and Member Customs Nasir Masroor Ahmed also accompanied him.
Chairman FBR said that better growth of business activities was in FBR’s own interest as it would lead to increase in tax revenue. He assured that FBR would not make policies or take measures that would create problems for taxpayers including business community. However, he said that FBR was responsible to receive tax from every taxable income. He said FBR was focusing on broadening the tax base in the country due to which number of taxpayers have increased from 0.7-million to 1.1 million. He was of the view that further increase in taxpayers would lead to reduction in GST.
Nisar Muhammad Khan said that Tax Advisory Committees would be formed in Islamabad in the next week that would be helpful in resolving the tax issues of the business community. He said previously our country had been relying on indirect taxation which put more burden on the common man and added that now FBR would focus on direct taxation to promote progressive tax system. He said budget making process would start from Feb-March 2017 and stressed that ICCI should send its budget proposals to FBR as well as invite FBR officials to Chamber so that budget could be finalized in consultation with stakeholders. He assured that all genuine tax issues of the business community would be resolved.
Highlighting the issues of taxpayers, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that FBR’s raids on shops were creating harassment in the business community. He stressed that FBR should refrain from such coercive tactics and always take ICCI on board before taking action against any taxpayer of this region so that issues could be settled through negotiations. He said Tax Advisory Committees in the past were playing effective role in resolving tax issues and urged that FBR should reconstitute such Committees for the facilitation of taxpayers.
He said that current tax system was unfair as it put more tax burden on industry compared to other sectors of economy, which was unjustified. He emphasized that FBR should develop a fair, transparent, easy to understand and easy to administer tax system that would promote better tax culture in the country. He said high tax rates always encouraged tax evasion and FBR should reduce tax rates to entice more people towards tax payment. He said instead of putting additional burden on existing taxpayers, FBR should focus on expanding tax base which was the right approach. Khalid Malik Senior Vice President, Tahir Ayub Vice President, Khalid Javed, Mian Akram Farid, Ejaz Abbasi and others also highlighted tax issues of steel, flour, hotel, property and other sectors and urged Chairman FBR for remedial measures.
