Islamabad, June 16, 2015 (PPI-OT): President Pakistan Businessmen and Intellectuals Forum (PBIF) and former provincial minister Mian Zahid Hussain on Tuesday asked the government to reconsider burdening vital sectors by imposing additional taxes on them as it can result in a taxation crisis.
Some critical sectors have reservations over taxes introduced in the recent federal budget which should be catered for lest it choke the growth, he said. Talking to the business community, Mian Zahid Hussain said that business community is facing problems across Pakistan but the situation of Karachi must be considered where the industrial community continue to pay billions to the tanker and criminal mafia.
He said that a weak taxation system has contributed to the shrinking tax base therefore government is left with no option to enhance taxes but it can result in fierce resistance by taxpayers. The veteran business leader said that Nadra record confirms that 3.2 million Pakistanis are rich but not the one-third of them pay taxes.
He said that our tax system is yet to move country towards just distribution of resources, accumulation of wealth and lifting people out of poverty which is resulting in widening gulf between rich and poor as well as instability. The tax collection can he enhanced by 300 percent without burdening common man but this needs political will which is absent.
He noted that Pakistan would need Rs1280 billion rupees in the ongoing fiscal to service debt while the same required 569 billion rupees in 2006-7. There are over three million businesses in Pakistan while over 67 thousand companies are registered with SECP.
Only 25 thousand of these companies’ submitted returns in 2013 and the number went down to 24000 companies in 2014 which indicate serious flaws in the system and contrary to the claim of broadening tax base.
According to PTA the number of mobile users has come down from around 140 million to 130 million which necessitates revisiting telecom taxation structure. He demanded of the government to do something about flying invoices and fake refund mafia which is impeding growth and keeping country dependent on loans.
For more information, contact:
Mian Zahid Hussain,
Pakistan Businessmen and Intellectuals Forum (PBIF)