Finance Minister has said that the (Reformed General Sales Tax) RGST is a must for documentation of business. But the RGST is too rigorous and harsh. In the present economic downturn, it should be cut from 15 to 10 percent without granting any exemption at all. The present Sales Tax Act should be scrapped, if we are going to introduce RGST. We must bring the non-taxpayers and evaders into tax net. The General Sales Survey of the business houses and shops can do this job. Survey should be done on regular basis bringing the people into tax net. We need to create tax culture by educating people. The discretionary powers must be used to alleviate peoples problems. The complaints must be heard sympathetically. The FBR must be reformed administratively and the number of members must be cut down. Certain dual vacancies or posts be slashed. Ongoing training of officers and lower staff must be carried out on scientific basis. There know-how of tax laws and administrative abilities be enhanced. Tax should not become a burden on people. They should be able to willing pay the tax liability.
The recovery of taxes must be overhauled and deadwood removed from tax files, updated information be made available. Current taxes must be recovered during current fiscal year without unnecessary delays. Loopholes in the tax laws and administration of taxes be plugged.
The possibility of evasion of taxes must be ruled out. Corruption is a big factor in our society and it is also the part of tax system. Corruption-free tax administration must be ordained. Culprits must be brought to book and punished for their crimes. In the developing countries, tax avoidance is a crime and strictly dealt with. There is no tolerance policy against corruption. We must emulate their tax regime. Progressive taxation is great step to provide social justice in the society and to reduce the gap between rich and the poor. In our tax culture, only salaried people pay tax honestly because of the tax deduction at source. Same terms must be introduced for businessmen. Our industry pays the taxes mainly. The bulk of the business houses do not pay any taxes with the collusion of tax officials. They get to keep all of their profits to themselves. They avoid their tax liability. A tax system must be people friendly and respect the tax-payers.
JAVAID BASHIR
Lahore
