ICAP plays key role in bud­get prepa­ra­tion process

Pakistan Observer - - ECONOMY WATCH -

SALIM AHMED LA­HORE—‘Ef­forts of ICAP in ad­vis­ing gov­ern­ment in bud­get prepa­ra­tion, par­tic­u­larly in sug­gest­ing amend­ments in rev­enue laws are com­mend­able and pro­pos­als re­ceived from ICAP were duly con­sid­ered in for­mu­la­tion of the Fi­nance Bill 2016-17.’ Ha­roon Akhtar Khan Spe­cial As­sis­tant to Prime Min­is­ter on Rev­enue said this at a post bud­get sem­i­nar or­gan­ised by North­ern Re­gional Com­mit­tee of ICAP. He said that harm­ful tax­a­tion that ham­pers busi­ness and trade should be elim­i­nated. ‘Be­ing vi­tal for good gov­er­nance, Pak­istan lacks cul­ture of tax com­pli­ance.

There is, there­fore, an ur­gent need to re­form the tax­a­tion system by en­gag­ing all the stake­hold­ers. ICAP’s ef­forts to as­sist and help Gov­ern­ment in this re­gard are com­mend­able,’ he added. In se­ries of “post bud­get sem­i­nars”, or­ga­nized by the South­ern and North­ern Re­gional Com­mit­tees of the ICAP in Karachi, La­hore, Is­lam­abad and Faisalabad, re­spec­tively, tax ex­perts unan­i­mously agreed that the new tax system au­to­ma­tion mea­sures will help re­duce the dis­crep­an­cies in the sales tax re­turns fil­ing and will strengthen the system. Pre­sen­ters on In­di­rect Tax­a­tion praised Gov­ern­ment’s de­ci­sion on the im­ple­men­ta­tion of new mod­ule. Speak­ers be­lieved that the au­to­ma­tion will min­i­mize the re­port­ing er­rors and strengthen the right of in­put tax claim.

In case of any sub­se­quent neg­a­tive mark- ing against the sup­plier such as non-ac­tive, blocked or black­list­ing, the bur­den will en­tirely shift to the sup­plier. With re­gard to tax on re­tail­ers, speak­ers pro­posed the gov­ern­ment to re­view its de­ci­sion of re­vert­ing back to turnover tax regime. ‘It’s just only two years back when FBR had man­dated reg­is­tra­tion for tier one (1) re­tail­ers and re­vert­ing back to turnover tax regime man­i­fest not only in­di­cate fail­ure of the reg­is­tra­tion drive but also ad­mis­sion of such col­lapse,’ one of the speak­ers said and added that such short­term mea­sures will ham­per ex­pan­sion of tax net and dis­cour­age ex­ist­ing tax­pay­ers.

Pre­sen­ta­tions on Di­rect Tax­a­tion high­lighted the salient fea­tures of the Fi­nance Bill 2016 while giv­ing de­tailed ex­pla­na­tion in re­spect of each key fea­ture. The speak­ers be­lieve that pro­mo­tion of cor­po­ra­ti­za­tion of busi­nesses, by ra­tion­al­iz­ing gross in­ci­dence of tax and com­pli­ance bur­den, ded­i­cated pol­icy mea­sure to tap sources of in­come and iden­ti­fy­ing with non-fil­ers and un­der dec­la­ra­tion was lack­ing in the Bill.

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