ISLAMABAD:Big retailers should be brought in the tax net without delay while industrial sectors known for tax evasion should be linked to the track and trace system. The decision to send tax evaders to jail is a good move but it should be ensured that field staff do not misuse the powers, he demanded.
This was stated by former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt in a statement on Sunday. He said the amount of taxable income for businessmen and salaried individuals should be increased by one hundred percent in the upcoming budget.
Keeping in view the unprecedented inflation, salaries and pensions should be increased by one hundred percent, withholding tax on bank transactions should be abolished as it is killing the economy, he said. Butt said that NIC condition should be relaxed and it should be made mandatory on purchase of one hundred thousand against the present practice of fifty thousand rupees.
Hundreds of billions of rupees of tax revenue is stuck in litigation, therefore, the number of income tax tribunals should be doubled to settle this outstanding issue, he added. He noted that there are four hundred thousand industrial and commercial consumers of electricity getting subsidy but only one hundred thousand are registered with FBR.
Government should take steps to improve their confidence in the tax system so that they can become part of the documented economy that is imperative for national development.
He said that Rs 5,000 currency note should cease to be legal tender to improve the economy, assist the banking sector and mainly make bribery difficult while withdrawing Rs 1,000 currency note will leave the business community with little option but to use banks for transactions.
Tax reforms aimed at national development need greater attention which includes the separation of taxation policymaking from tax collection as it is resulting in problems, he said.