KARACHI: Financial experts have come up with some budgetary proposals and suggestions for the upcoming Budget 2015-16.
The experts envisaged proposals for enhancing tax collection and improving tax-to-GDP ratio by giving income tax audit immunity to the taxpayer, if he pays more than 25 percent of additional tax as compare to previous year; creating visible incentives for paying tax honestly.
They further suggested charging concessionary withholding tax (WHT) rates from compliant taxpayers at the time of registration of vehicles and annual renewal, purchase of airline tickets, bank profits and cash transaction on import of old and used vehicle by taxpayers.
They further proposed prescribing uniform of customs administration, reorganisation of Inland Revenue collectorates like MCC Faisalabad, MCC Multan and others.
They further suggested establishment of permanent customs stations and jurisdictions by posting AC/DCs (with their own budget like that of DPOs/DCOs) instead of mobile squads at important locations on historical smuggling routes like Fort Munro, Rahim Yar Khan, Mainwali and Bhakkar in Punjab.
Similarly, they proposed fixing quantity targets along with budgetary targets and fixing minimum number of consignments, containers and weight at dry ports and in AFUs.
They further suggested establishment of Keti Bandar Port, appointment of two project directors of reforms and automation – one in Islamabad and other in Lahore – with 10 officers, along with project allowance of a minimum of Rs 200,000 and giving financial autonomy to project directors.
The experts further suggested establishment of two federal boards of revenue (FBRs), one for customs (for taxes collected at import stage) and other for Inland Revenue (IR) (for domestic taxes).
They further suggested reducing agencies’ interventions at airports; residential facilities for customs officers; reviving HR policies and decentralisation in the FBR.
They were of the view that the government authorities concerned should introduce “tax safety nets” in upcoming budget for FY 2015-16 and to introduce “fixed regime tax” at borders, including Balochistan and FATA.
