ICAP suggests enhancement of tax base

KARACHI—The Institute of Chartered Accountants of Pakistan in its budget proposal has given a roadmap to broaden tax base, facilitate already registered taxpayers, abolish tax amnesty schemes and improve governance in FBR. A Pre budget seminar was organized by ICAP in Karachi Syed Ayaz Mehmood, Chief Commissioner (Inland Revenue), Large Taxpayer Unit Karachi, Federal Board of Revenue was the chief guest. With reference to direct taxation, Asif Haroon, FCA, Member, ICAP Taxation Committee, said that ICAP has recommended that tax policy board should play its role in formulation of fiscal policy as a support to legislative function; and act as an oversight over the performance of the FBR.

‘Only Minister for Planning from the cabinet should be the member of board whereas rest of the board should comprise of representatives of major stakeholders viz. FPCCI, economists, Institute of Chartered Accountants of Pakistan etc. It was suggested that tax structure should be reformed that ensures avoidance of multiple taxation by Provinces and / or Federal Government. While talking about policy reforms in appellate forum, Asif Haroon said ‘Appeals should be brought under the administrative control of Federal Ministry of Law and the Appellate Tribunal under the control of the High Court of the respective jurisdiction; No recovery of tax demand be created till the decision of Commissioner-Appeals; Officers of the tax department should not be appointed as judicial members of the Appellate Tribunal’.