- Dar asks Tax Reforms Commission to make recommendations to broaden tax net and ensure improvement in tax-to-GDP ratio, facilitation of tax payers and transparent client-friendly system
Finance Minister Senator Ishaq Dar has urged the members of the Tax Reforms Commission to come up with realistic recommendations for the tax payers’ facilitation through a client-friendly transparent system of taxation.
While chairing the inaugural meeting of the Tax Reforms Commission at FBR Headquarters Saturday, the minister said that high hopes were pinned on the newly-formed Tax Reforms Commission to suggest measures for ensuring equitable taxation as well as enhancement in tax-to-GDP ratio. He said that members of the commission could finalise their proposals on priority so that these could be shared with all the stakeholders, prior to placing them before the Parliament and incorporation in the next budget.
Dar also called upon the commission to put forth suggestions for devising a proper appellate system to effectively dispose of litigation cases. The litmus test of the recommendations would be the implementation in the short run and increase in the revenue in the medium term, he said.
The minister said there was broad-based representation in the commission, Parliament, business community, professionals, chambers of commerce and industry and the civil society were all covered with a view to chalk out a comprehensive plan to revamp the revenue collection system.
The finance minister said that when the Pakistan Muslim League-Nawaz (PML-N) government took over, there were forecasts of a total collapse of the economy by June 30, 2014 but from day one the government took austerity measures and cut down on expenditure by at least 30 percent, clamped down hard on culture of concessions and SROs, introduced reforms and the result is the economic turnaround which is being internationally recognised.
“Our improved economic outlook has been acknowledged by international rating agencies like Moody’s and Standard and Poor’s while Goldman Sachs economist Jim O’ Neill and BBC have predicted that Pakistan would become world’s 18th largest economy by 2050 from its current 44th position.”
Moreover, the minister said that as a result of positive measures for economic betterment, the government has regained the confidence of international financial institutions like the ADB and the World Bank who were ready to fund important projects in Pakistan.
Dar said that the hosting of Diamer Basha Conference by US itself was a sign of confidence in Pakistan’s improved economic standing.
Tax Reforms Commission Chairman Syed Masood Ali Naqvi briefed the members about mandate of the commission. He said if the members could come up with practicable recommendations, they would be making their due contribution to development of economy. He said the country had plenty of resources as well as the potential which needed to be exploited effectively to be useful for economic progress.
The minister said the Tax Reforms Commission constituted by the government was a professional forum and would aim at revamping the Tax System as a whole and look for inclusive economic growth. The chairman said economic policies need consistency. There should be a “Meesaq e Maeeshat” just like a “Meesaq e Jamhooriat” so that whosoever is in power, economic priorities should not change.
FBR Chairman Tariq Bajwa on this occasion gave a presentation to the finance minister and members of the commission on the current state of tax collection and the issues being faced by the FBR in this regard. He also dilated in detail on the administrative and policy reforms introduced by the FBR.