Government has set a very high tax revenue target of Rs.2380 billion, which seems unachievable as it has far behind in realizing the outgoing fiscal year’s revenue target of Rs.1950 billion.
All the major economic indicators showed deteriorated performance against the same period of last year as all of them remained in negative zone. Therefore, Government should revise the tax collection target by keeping in view the ground realities to achieve sustainable development, Yassar Sakhi Butt, President Islamabad Chamber of Commerce and Industry (ICCI) has stated this in a statement.
ICCI President feared that harassment by tax departments would increase to achieve this huge revenue target and tax machinery would be under extreme pressure to get revenue targets, announced in the Federal Budget 2012-13.
Tax departments should collect taxes without any harassment, thus Government should develop a conducive environment to collect taxes and also to encourage non taxpayers be encouraged to come into the tax net, he added.
ICCI President was of the view that in case of lagging behind the expected tax target, Government would be facing big problems because of further increase in the fiscal deficit which has already widened and pulling country into debt trap.
Yassar Sakhi Butt said that there should be a free and fair taxation policy in order to raise revenues, broadening and simplifying the tax collection procedures. Government must develop an environment of trust to build the confidence of tax payers, he emphasized.
ICCI President anticipated that the country has a potential of increasing tax to GDP ratio through making the system public friendly and equitable. He further said that widening tax net is very much required but it must be in a systematic and realistic way. He emphasized on winning the public confidence by improving governance, eradicating corruption and pursuing equitable tax policies.
