Tax reforms necessary for economic revival

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in its proposals for federal budget 2013-14, has prepared a number of tax reforms that the federation believes would broaden the exiting tax net. FPCCI President Zubair Ahmed Malik, while finalising budget proposals, said to pursue more people into the tax net, all taxpayers should be issued a card on the pattern of credit card with the title FBR National Identity Card under which all taxpayers should be given one percent concession on all transactions, government payments, utility bills and government challans while non-taxpayers should be charged one percent additional on all such transactions. Malik said FPCCI would soon submit its budget proposal to the government and FBR. He said the budget proposals submitted by the FPCCI would pave the way for economic and industrial revival in the country and bring more taxpayers into the tax net. Malik said if the proposals prepared by the apex body of the country’s businessmen were not incorporated into the federal budget, the FPCCI would reject the Federal Budget 2013-14. He said FPCCI had declared tea, coffee, tyres, PVC, POL products, electric appliances and machinery, polythene, steel products, cigarettes, sulphuric acid, ceramic tiles, surgical instruments and medical equipment, mobile phones and spices as smuggling prone and should be protected from smuggling. The FPCCI chief said the government should take serious measures to overcome the energy crisis and control deteriorating law and order. The apex body further suggested declaring issuance of cash memo or invoice on all business transactions as mandatory and seller and buyer have to mention NTN on the invoice. This would help a lot to bring more taxpayers into the net.