ICAP rec­om­mends mea­sures to broaden tax base

Pakistan Observer - - ECONOMY WATCH - ISLAMABAD: Chair­man ICAP Tax­a­tion Com­mit­tee Rashid Ibrahim speaks dur­ing a press con­fer­ence.

ISLAMABAD—The In­sti­tute of Char­tered Ac­coun­tants of Pak­istan (ICAP) has sub­mit­ted key rec­om­men­da­tions re­gard­ing the bud­get 2016-17 to the gov­ern­ment. The ICAP’s Com­mit­tee on Tax­a­tion has been con­stantly mak­ing ef­forts to iden­tify ar­eas where re­forms are needed for broad­en­ing tax base. The prime ob­jec­tive of th­ese pro­pos­als is to as­sist the gov­ern­ment in im­prov­ing rev­enue col­lec­tions, en­sur­ing vol­un­tary tax com­pli­ance and build­ing tax pay­ers’ con­fi­dence lead­ing to­wards tax com­pli­ant cul­ture,’ said Chair­man ICAP tax­a­tion Com­mit­tee, Rashid Ibrahim, while talk­ing to me­dia on Wed­nes­day.

He said there is con­sen­sus amongst the tax ex­perts that most of the prob­lems are stem­ming from weak­ness in the ef­fec­tive im­ple­men­ta­tion of fis­cal laws. He said that the cor­po­rate sec­tor which is the most doc­u­mented seg­ment of the econ­omy has been ne­glected, said Rashid. ‘The ser­vice, whole­sale/re­tail, trans­port and the agri­cul­ture busi­ness sec­tors are still not fully doc­u­mented hence their con­tri­bu­tion to the na­tional ex­che­quer is neg­li­gi­ble and ma­jor­ity are out of the tax net,’ added Rashid.

He said tax Au­dit is yet an­other weak side of the Fed­eral Board of Rev­enue (FBR) as well as of Pro­vin­cial Au­thor­i­ties. There is ur­gent need of ca­pac­ity build­ing of the field for­ma­tion of­fi­cers with spe­cial­ized train­ing to un­der­take the chal­lenges of tax au­dit, said Rashid. He in­formed that re­cently a del­e­ga­tion of ICAP met Ad­vi­sor to the Prime Min­is­ter, Ha­roon Akhtar Khan, Mem­ber IR (Op­er­a­tions) FBR Rah­mat­ul­lah Wazir and other of­fi­cials to dis­cuss bud­get pro­pos­als and rec­om­men­da­tions pre­pared by ICAP.—APP

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