Busi­ness com­mu­nity to co­op­er­ate with FBR in widen­ing tax net

The Pak Banker - - NATIONAL -

ISLAMABAD: The United Busi­ness Group ( UBG) of FPCCI on Wed­nes­day asked the gov­ern­ment to fo­cus on fast track in­dus­tri­al­iza­tion and broad­en­ing tax base in the next bud­get to boost Gross Do­mes­tic Prod­uct (GDP) growth. The gov­ern­ment must frame poli­cies to fa­cil­i­tate in­dus­trial sec­tor for job cre­ation, rev­enue gen­er­a­tion and ex­ports to push GDP growth be­yond 5.5 per­cent, said Zubair Tu­fail, Sec­re­tary General of the UBG, said a press re­lease here. Pak­istan con­sumes more than it pro­duces re­sult­ing in wide gap be­tween the de­mand and sup­ply which re­sults in im­ports that is the root cause of in­fla­tion and trade and cur­rent ac­count deficits bridged through loans. Zubair Tu­fail said that boost­ing do­mes­tic pro­duc­tion through proper in­dus­tri­al­iza­tion to re­duce im­ports is the only so­lu­tion.

Pol­icy-mak­ers need to re­view the im­port list and iden­tify items which can be pro­duced lo­cally like en­ergy, en­gi­neer­ing and food­stuff and fer­tiliser etc. to cut im­port bill. He said that gov­ern­ment must fol­low the com­pet­ing na­tions that have al­lowed im­port of plant and ma­chin­ery with­out any duty or sales tax as tax­ing cap­i­tal goods dis­cour­age lo­cal and for­eign in­vestors. Zubair Tu­fail said that many for­eign in­vestors have found bet­ter op­por­tu­nity for in­vest­ment in other coun­tries like In­dia, Malaysia, In­done­sia and Thai­land etc. which must be pon­dered upon. The au­thor­i­ties must re­alise that im­ports are mak­ing neg­a­tive con­tri­bu­tion to the GDP which is not sus­tain­able while sub­si­dized ex­ports can­not make in­dus­try glob­ally com­pet­i­tive. He said that FBR should be re­formed while non­fil­ers should be net­ted as the cur­rent num­ber of fil­ers is about one mil­lion which must be dou­bled in one year for which busi­ness com­mu­nity will fully co­op­er­ate with au­thor­i­ties. FBR must ini­ti­ate se­ri­ous con­sul­ta­tion with the busi­ness com­mu­nity with an aim to present a peo­ples friendly bud­get.

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