ISLAMABAD: The Islamabad Chamber of Commerce & Industry (ICCCI) organized a pre-budget consultative session to seek budget proposals from the local business community. Ahmed Hassan Moughal, President ICCI presided over the session while Rafat Farid Senior Vice President ICCI, Naeem Siddiqui Chairman ICCI Tax Committee and others were also present at the occasion.
Addressing the session, Ahmed Hassan Moughal, President ICCI said that the prevailing complicated and difficult tax system was a major hurdle in promoting tax culture and improving tax revenue. He urged that government should develop a simplified tax system that should facilitate the growth of business activities and increasing tax revenue. He said that tax rates were quite high in Pakistan that should be rationalized that would help in broadening tax net.
Rafat Farid Senior Vice President ICCI said that there were different tax rates at federation and provinces that were creating problems for business community and emphasized that government should introduce a uniform tax system across the country. He said government should ensure better benefits, incentives and respect for taxpayers that would help in expanding tax base in the country. He said billions of rupees of taxpayers were stuck up with FBR and industry was facing liquidity issues and urged that government should evolve a streamlined refunds clearances process.
Naeem Siddiqui, Chairman ICCI Tax Committee said that GST in Pakistan quite high that was a major hurdle in promoting business activities and emphasized that government should bring it down to single digit level in next budget. He said the number of taxes should be minimized to ease the problems of taxpayers. He said Commissioner Appeal should be made independent from FBR to ensure justice in tax disputes. He said FBR should shun the practice of bank attachments without intimation to taxpayers as it was creating harassment in business community.
The participants said that FBR has increased proper value vide SRO-117(1)/2019 and government should reduce tax on sale/purchase of property from 2% to 1% for non-filers and from 1% to 0.5% for filers. They said that SBP has banned advance payment for imports that was affecting business activities and stressed that this ban should be lifted forthwith. They were of the view that government should impose tax on profits and not on revenue of business as tax should be only on income. They said FBR should streamline its audit process and audit of a business should be after 3-5 years.
