LAHORE: Pakistan is facing 34 per cent annual losses of revenue mainly due to power loadshedding, while the Central African Republic reports only 25 per cent losses.
This was stated in a report, according to which Pakistan has dropped on the World Bank’s Doing Business 2016 ranking, placing at 138 out of 189 countries, with a Distance to Frontier (DTF) score of 51.69, which is marginally higher than last year’s score of 51.62. The ranking reveals performers with good rules which allow efficient and transparent functioning of businesses and markets while protecting public interest.
Former LCCI vice president Kashif Anwar, talking on the report, said despite declining ranking, the government has taken no concrete measure to stop this downfall, which will badly impact our image internationally.
“Pakistan is shifted to 138 in 2016 from 136 in 2015 out of 180 economies while in doing new businesses, the country has been shifted to 122 in 2016 from 114 in 2015. World Bank has issued Pakistan Ranking in Ease of Doing Business Index, according to which, Pakistan is shifted to 133 in 2016 from 128 in 2015 in Getting Credit and in Paying Taxes, Pakistan ranking is 171 out of 180 economies while in electricity, Pakistan ranking is 171 out of 180 economies.”
He said that local investors are not ready to invest and expand their businesses because of energy shortages, law and order situation and high input costs. The taxation system is getting complex. In order to increase the tax payers, we have to simplify the procedures. Due to complex and lengthy procedures, the number of tax payers is reducing day by day. However, the number of return filers has increased.
Kashif Anwar said that nothing has been done to facilitate the existing tax payers by simplifying the taxation procedures in the current budget.
The LCCI former VP observed that the revenue target of Rs3.1 trillion will be completed for year 2015-16 and the target of Rs.3.62 trillion will be achieved in year 2016-17 by imposing new heavy taxes and increasing the rate of duties. As a result we will not achieve the target of $35b exports till 2018. He said just penalizing the non-filers is not the solution of the problem the actual achievement is to bring them in the tax net. The government has to take concrete steps to highlight the incentives for taxpayers which automatically convince the non tax-payers to pay tax.
