Govt ef­forts to broaden tax base backed

The Pak Banker - - NATIONAL -

Chair­man of the United In­ter­na­tional Group Mian Shahid on Sun­day lauded the de­ter­mi­na­tion of the govern­ment to broaden the tax base which is must for so­cial and eco­nomic de­vel­op­ment.

He also lauded the govern­ment for tak­ing busi­ness com­mu­nity into con­fi­dence be­fore tak­ing crit­i­cal de­ci­sion which has a very pos­i­tive ef­fect. Mian Shahid asked the govern­ment to re­visit tax ad­min­is­tra­tion and re­duce taxes on some crit­i­cal sec­tors to spur in­vest­ment which will in­crease rev­enue and pro­vide jobs. He said that tele­com in­dus­try is pay­ing 40 per­cent taxes which is block­ing growth of mo­biles and mo­bile in­ter­net that is di­rectly re­lated to na­tional de­vel­op­ment.

Sim­i­larly, he said, cor­po­rate tax has been brought down from 34 per­cent to 32 per­cent in the last two years but it should be re­duced fur­ther to lure in­vest­ment in the sec­tor. He said that cor­po­rate tax in In­dia stands at 30 per­cent, its 20 per­cent in UK and 15 t0 39 per­cent in the US. There are coun­tries where there is zero to low tax rate which has helped their economies pro­pel which in­clude UAE and Sin­ga­pore. Mian Shahid also lauded the tax amnesty scheme of the govern­ment terming it a move in the right di­rec­tion which will broaden tax base, ini­ti­ate ex­pan­sion and im­prove econ­omy.

He said that the de­ci­sion will help Pak­istan in­crease rev­enue as we can­not rely on loans for long. It is a healthy scheme which will bring the money back from abroad which is nec­es­sary for our sur­vival. He said many traders had also be­come non-fil­ers be­cause of the com­pli­ca­tion of the tax regime, and with this scheme they would be com­fort­able with the tax sub­mis­sion at least for the next three years.

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