The Pakistan Business Council (PBC) has said that government could generate an additional Rs 300 to 400 billion in revenues within the present tax regime through better coverage and enforcement.
"Taxation measures should focus on documentation and broadening the tax base for direct taxes," said PBC representatives at a panel discussion on budget here on Wednesday.
Referring to studies conducted by PBC, they were of the opinion that presumptive basis of taxation may be replaced by net income tax earned basis. "Wealth tax in the old form need not be introduced but a tax on assets created out of untaxed income be levied," they added.
The panelists included former Governor State Bank of Pakistan (SBP) Syed Salim Raza, CEO Siemens Pakistan Sohail Wajahat Siddiqui, Managing Director Progas Energy Ltd Abbas Bilgrami and mediapersons hailing from various organsations.
They were of the opinion in their recommendations that reforms were needed to address over-invoicing, mis-declaration and Afghan Transit Trade (ATT) leakage issues. Use of IT tools in customs could help in this regard and gradual reduction in Custom duties on smuggling prone items will discourage these malpractices.
"Provincial governments do have the necessary legislations in place to tax income on agriculture and the collection machinery, compliance and enforcement measures need to be strengthened," they pointed out.
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