SBP for en­hanc­ing rev­enue thru RGST for eco­nomic pros­per­ity

The Pak Banker - - Front Page -

IS­LAM­ABAD: The Gover­nor of State Bank of Pak­istan (SBP) Shahid H. Kar­dar on Wed­nes­day called for rais­ing tax rev­enue by im­ple­ment­ing Re­formed Gen­eral Sales Tax (RGST) for the eco­nomic pros­per­ity of the coun­try.

"The coun­try desperately needs a tax struc­ture in or­der to im­prove its econ­omy. The RGST can be the best op­tion but un­for­tu­nately our politi­cians are not con­vinced enough to pass it into a law", Mr. Kar­dar said adding that the RGST was a very pro­gres­sive one and it would ben­e­fit most seg­ments of the so­ci­ety.

He stated this while chair- ing a ses­sion of a three-day an­nual gen­eral meet­ing and con­fer­ence of Pak­istan So­ci­ety of Devel­op­ment Econ­o­mists (PSDE) here at a lo­cal ho­tel in which renowned econ­o­mists from across the world par­tic­i­pated.

The con­fer­ence has been or­ga­nized by Pak­istan In­sti­tute of Devel­op­ment Eco­nom­ics (PIDE).

The SBP Gover­nor also expressed his con­cern over low col­lec­tion of the prop­erty taxes spe­cially by the prov­inces which was af­fect­ing the over­all col­lec­tion of the tax rev­enue.

He said that the pro­vin­cial gov­ern­ments were not do­ing well in col­lec­tion of tax from dif­fer­ent sec­tors es­pe­cially in prop­erty and agri­cul­ture sec­tors.

Mean­while, ad­dress­ing the gath­er­ing, Paul Ross, mis­sion chief of In­ter­na­tional Mon­e­tary Fund, Is­lam­abad said that the govern­ment must have to raise the level of its na­tional sav­ings which could gen­er­ate re­sources for the devel­op­ment of the coun­try.

He expressed his re­sent­ments over the low tax rev­enue in the coun­try and said that the govern­ment should raise the tax rev­enue by in­tro­duc­ing an eq­uity based tax­a­tion sys­tem.

Paul said that de­cen­tral­iza­tion of the tax col­lec­tion sys­tem could achieve more suc- cess and with­out co­op­er­a­tion be­tween prov­inces and fed­eral govern­ment the coun­try could not gen­er­ate sig­nif­i­cant tax rev­enues.

Pro­fes­sor Vito Tanzi, for­mer Di­rec­tor of In­ter­na­tional Mon­e­tary Fund, USA said that the re­spon­si­bil­ity of tax col­lec­tion should be as­signed to the lo­cal gov­ern­ments.

In this re­gard, he said, the lo­cal gov­ern­ments should be given enough power and author­ity to im­pose the taxes.

Dr. Hafeez A.Pasha, Dean Bea­con­house Na­tional Uni­ver­sity, stressed on the need of equal dis­tri­bu­tion of funds on the in­ter-re­gion as well as in­tra re­gion level. -PB News

IS­LAM­ABAD: Prime Min­is­ter Syed Yusuf Raza Gi­lani talk­ing to Fed­eral Min­is­ters who called on him at PM Sec­re­tar­iat. -App

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