Govt efforts to broaden tax base backed
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.