LAHORE: Deputy Commissioner, Zone IV, CRTO, Lahore, Ghazala Nasir Siddique has said the stringent laws against tax evasion and tax avoidance is a key to strengthen national economy.
During an exclusive interview with Customs Today, Ghazala Nasir Siddique said the tax is a charge in terms of monetary, which is paid by public to the government. Tax evasion is the main reason for collecting less tax revenue. Importance of taxation for a nation’s economic wealth and development cannot be overemphasized. However the achievement of this goal is often hindered by tax evasion as Pakistan ranks at the 152 amongst 154 countries from the bottom in tax-to-GDP ratio. Pakistan has one of the best laws in the world relating to several key areas of concern including money laundering and tax evasion but their implementation remains vulnerable.
Ghazala Nasir Siddique stressed that there should be major objectives to identify the main causes of tax evasion. A tax evader always finds excuses not to pay tax which is ruinous for citizens of a nation & its prosperity. She also discussed the major hurdle in the economic development & high budget deficit in Pakistan who is low tax to GDP ratio. Pakistan can generate high tax to GDP ratio by increasing literacy rate, by controlling tax evasion & tax exemptions. She further suggests that tax audits & heavy punishments can bring down the size of clandestine economy with all its outcomes.
Deputy Commissioner said every steel-melter, steel re-roller, composite steel units, have to pay a fixed and final tax per unit of electricity consumed for the production of steel billets, ingots and mild steel (MS products) excluding stainless steel.
She told Customs Today that up to February, her zone collected Rs7449.956 million under the jurisdiction of corporate and non-corporate cases of steel sector/ steel pipe manufacturers, non-residents, members of Lahore Stock Exchange, Lahore and pay phone companies against the target of Rs5230.000 million. There is average collection increase of Rs6718.855million in 2016-2017 which is 76% over the last year in 2015-2016 which was Rs3818.982 million.
Ghazala applauded the efforts of the CRTO, which is achieving monthly and quarterly targets under the supervision of Chief Commissioner Syed Nadeem Hassain Risvi. She appreciated that the FBR had collected Rs2046 billion in the current financial year, which is seven percent higher than the collection for the same period last year.
She said that presumptive mode of taxation needs a revisit to bring the income tax regime more in line with international practices. In Pakistan, about 70% of tax revenue comes through indirect taxation. The tax proposal finalized for slapping fixed tax on retailers and fixed taxation regime on marble sector and steel melters by removing legal lacunas will be a progressive step in the upcoming budget.
