ISLAMABAD: Islamabad Chamber of Commerce and Industry (ICCI) has lauded the government’s decision to separate Federal Board of Revenue’s tax collection and policy making functions and termed it a positive move as it would infuse confidence in the taxpayers and help in enhancing the tax base of the country.
“Prime Minister Imran Khan during election campaigns had promised the nation that if PTI was voted into power, it would bring drastic reforms in FBR,” said President ICCI Ahmed Hassan Moughal in a statement.
He said the federal cabinet’s decision to separate revenue collection administration from tax policy formation was a major step in the right direction as it would lessen the complaints of the taxpayers and promote equity and transparency in the tax machinery.
He hoped that the PTI government would bring further reforms in FBR to promote a true tax culture in the country.
ICCI Senior Vice President Rafat Farid and Vice President Iftikhar Anwar Sethi said the business community has been demanding since long for the separation of tax administration and policy formation functions and lauded the decision of the government for fulfilling this longstanding demand as it would improve the tax revenue collection and reduce the heavy reliance of the country on foreign loans.
They said the current taxation system was unfair and unequal as it was not collecting tax from all sectors of the economy according to their taxpaying ability.
They said the current taxation system was mostly dependent on indirect taxation which was regressive in nature.
They stressed that the private sector should be given due representation in Tax Policy Board and focus should be given to develop a fair and transparent taxation system that should collect tax from every eligible taxpayer.
