KARACHI: Federal Minister for Finance, Shoukat Tareen assured consultation with all stakeholders in budget preparation process to achieve goals of sustainable development and inclusive growth.
In an online meeting with Federation of Pakistan Chambers of Commerce and Industry (FPCCI) the finance minister, appreciated budget proposal presented by the representative of traders and industrialists, said a press release issued here on Sunday by FPCCI.
Tareen was of the opinion that much needs to be done and the measures have to be radical and sustainable incremental changes in consultation with the business community.
The finance minister referring to the presentation by FPCCI on ” Reduced Taxes for Accelerated Growth and Enhanced Tax Revenue”, appreciated the tax policy and principle concept and assured to continue consultation and consideration over the tax simplification and reduction proposals.
On the various tax rates proposed by FPCCI, he said these could be further discussed for its outcome.
President FPCCI, Mian Nasser Hyatt Maggo, apprised the finance minister on issues being faced by the businesses, industries and trader communities of Pakistan. He specifically pointed out a number of reasons including the required paradigm shift in the present taxation structure towards the need of recovering the ailing economy.
Mian Maggo stressed on due representation of FPCCI on all boards and councils constituted for considering the ease of doing business and improving competitiveness of economic produce to bid more exports and reduce imports.
He opined that out the present trend of giving individual representations to few big business houses was not supportive for economic and political stability wherein SMEs and Small and Micro Businesses have to be accommodated for economic growth.
He said the growth of economy and economic stimulus during COVID-19 to be preferred over fiscal consolidation, which is achievable in low tax rates, broadening of tax base and bringing in compulsory registration of potential tax payers, otherwise to be filers in the system.
“In the present taxation system tax collection and adjudications are performed by same tax officials in negation of statuary requirement by which tax adjudication functions have to be separated and independent with no cross bordering of the same officials in collection, audit, recovery and adjudication, ” President FPCCI noted.
Maggo also stressed the need of immediate holding in abeyance of Computerized National Identity Cards conditions for buyers to collect more sales tax up to June. He also asked for allowing sales to unregistered persons as it negatively impacted sales tax collections and said withdrawing this restriction up to June 2021 would result into collection of more sales tax.
Shaukat Tarin assured FPCCI that he would advise Federal Board of Revenue to swiftly start a consultative process with FPCCI on reduced taxes for accelerated growth and enhanced tax revenue.
He also offered to FPCCI President to nominate one member each to twelve EAC groups; which were making recommendations on economic, financial, business, and sectoral issues.