LAHORE: The government has no indigenous tax system developed from within the local social and cultural conditions which is one basic hurdle in the way of exploration of the full potential revenue collection.
These views were expressed by Lahore Tax Bar Association (LTBA) General Secretary Ch Qamar-uz-Zaman Mohal while talking to Customs Today here the other day.
The laws of governing tax system are so difficult that the tax officers are also unable to comprehend and unjust are being committed to the taxpayers, the LTBA general secretary said adding that, circle system was a good tax system that should be reconsidered to increase revenue collection.
Customs duties have been rationalized to a great extent in accordance with the World Trade Organization WTO orders; however, the government needs to bring down rates of sales tax, income tax and other taxes and increase the income slab to increase revenue collection.
Mohal said that Customs laws should be equal for every individual, percentage of customs duties should be reduced, and authorities should make a mechanism that could come in handy in doing away with the under-invoicing from the country.
He said the government should make income tax and customs laws in due consultation with the tax lawyers and traders community to introduce indigenous tax system in perfect harmony with the local conditions.
To a query, he highlighted that good numbers of smuggled items are dumped in our markets inflicting heavy losses on the genuine businessmen. It is need of the hour to crush under-invoicing and smuggling from the country for a sustainable growth and development”, he responded.
Registered taxpayers who are paying their taxes must be appreciated and not harassed so that they feel honored in paying their tax liabilities instead of evading them, Mohal pointed out.
Sales Tax exemptions should be withdrawn, percentage of sales tax should be reduced as the rate of tax is much higher in our country than that of the other countries in the region, he added.
While giving his insight in to the income tax related issues, Mohal, said that income tax percentage should also be reduced in the upcoming budget enabling the taxpayers to find taxpaying an easy option than that of the tax evaders. He pointed out that income tax percentage in our country is comparatively higher than the other countries in the region.
The taxpayers who are already in the tax net are being squeezed by the department thus discouraging the taxpayers from paying their tax liabilities, he concluded.
