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PFC demands tax reforms for strengthening economy on sound footings

By Our Special Correspondent

LAHORE: Pakistan Furniture Council (PFC) Chief Executive Mian Kashif Ashfaq Saturday emphasized on the need of result oriented introducing reforms in existing tax laws to bring non-filers into the tax net and PFC would put forward a set of proposals for overhauling outdated tax machinery, including separating policy and implementation to broaden the narrow tax base after consulting with the stakeholders in private sector.
Presiding a meeting of board of directors here today, Mian Kashif said all the efforts to reform tax collection machinery have failed to yield desired results. It is evident from the fact that the business community carved out proposals for tax reforms and presented to last Pakistan Muslim League-Nawaz (PML-N) led government but most of its recommendations were put into shelf.
He said a high level delegation of PFC comprising of prominent business leadership would call on Advisor to PM on Finance Abdul Hafeez Sheikh soon and present to him a set of proposals helping the government to bring reforms in tax base in Pakistan. He said one of the objectives of tax reforms was to improve the tax structure by reducing reliance on indirect taxes like import duties and central excise duties and increasing the share of direct taxes. It is evident from the fact that the share of indirect taxes in total tax revenue was above 80 percent in 1990, though it has declined continuously but is still more than 60 percent, especially if presumptive taxes are excluded from the ambit of direct tax collection. He further said the government should focus on improving the efficiency of tax administration through transparency, training, auditing, and upgrade of information gathering and processing system.
Mian Kashif further said that the tax system should be simplified and all revenue collection bodies should be merged into one ministry or body. This practice will help in ease of doing business in the country, he said, adding that according to the World Bank, Pakistan is at 144th number in ease of doing business of the list of 190 countries, which is alarming.
He further proposed that the federal and provincial tax systems should be harmonized, double taxation should be discouraged, and direct taxes should be encouraged instead of the indirect tax system,” he added.
There is a dire need of skilled manpower in the country, as China-Pakistan Economic Corridor (CPEC) projects bring many job opportunities in the country, he added. He suggested the government to clear tax refunds on a priority basis.
He stressed the urgent need for introducing-pro poor, business-friendly, export and growth-oriented monetary policies to help strengthen the national economy on sound footings besides restoring the confidence of foreign and local investors.
Mian Kashif said the entire business community fully support the Prime Minister Imran Khan to help strengthen the bleak economy on a sound footing.

PFC demands tax reforms for strengthening of national economy on sound footings
By Our Staff Correspondent
LAHORE: Pakistan Furniture Council (PFC) Chief Executive Mian Kashif Ashfaq Saturday emphasized on the need of result-oriented introducing reforms in existing tax laws to bring non-filers into the tax net and PFC would put forward a set of proposals for overhauling outdated tax machinery, including separating policy and implementation to broaden the narrow tax base after consulting with the stakeholders in private sector.
Presiding a meeting of board of directors here today, Mian Kashif said all the efforts to reform tax collection machinery have failed to yield desired results. It is evident from the fact that the business community carved out proposals for tax reforms and presented to last Pakistan Muslim League-Nawaz (PML-N) led government but most of its recommendations were put into shelf.
He said a high level delegation of PFC comprising of prominent business leadership would call on Advisor to PM on Finance Abdul Hafeez Sheikh soon and present to him a set of proposals helping the government to bring reforms in tax base in Pakistan.
He further said the government should focus on improving the efficiency of tax administration through transparency, training, auditing, and upgrade of information gathering and processing system.
Mian Kashif further said that the tax system should be simplified and all revenue collection bodies should be merged into one ministry or body.
He further proposed that the federal and provincial tax systems should be harmonized, double taxation should be discouraged, and direct taxes should be encouraged instead of the indirect tax system.

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