Finance Minister Ishaq Dar has approved the formation of a Tax Reform Commission to review customs tariff and rationalise direct and indirect taxes prevailing in the country. The business community had been demanding the establishment of the commission for a long time to introduce tax reforms and simplify the tax system. The proposed commission will examine the structure of the Federal Board of Revenue (FBR) and will also review the matters relating to the administration and autonomous status of the board. The commission could also be assigned a task to check illegal crossings of the individuals and goods through the international borders. It will also look into setting up a border force and other matters related to it. The commission will comprise at least 20 members and will finalise its suggestion within 120 days.
The government is taking steps to introduce tax culture and enhance tax net in the country. However, reforms in the tax system are also essential to remove sense of deprivation and disappointment prevailing among the business community. A consultation process and interaction between the tax administration and the taxpayers is important to improve tax collections in the country.
The business community was right in demanding reforms in the tax system so that they pay tax as a national duty without any compression and compulsion. Some individuals in the bureaucracy always happy to come up with novel ideas to extract more and more money from the taxpayers. The tax administration has been in a position to listen to problems and grievances of the business community at the hands of various government departments. The government collects billions of rupees taxes from well to do individuals, and it should also come to their rescue when they are pressured from various factors, including the government agencies.
Meanwhile, a traders’ body has decided to hold a meeting next months to launch a protest movement on the issue of sales tax, property tax and tax returns. They are demanding the government withdraw amendment to the Sales Tax Finance Act 2014-15. The government ought to listen to their problems.
