The Overseas Investors Chamber of Commerce Industry (OICCI) has once again stressed the need to document and tax all sectors of the economy to broaden the tax base and eradicate tax evasion.
In order to ensure documentation of all segments of the economy OICCI has recommended that all legal entities including individuals, association of persons, corporate and NGOs/NPOs should file annual tax returns, as well as wealth statements, irrespective of their source of income, if the total income for the year is in excess of the government approved threshold, which currently is Rs 350,000.
In case the earned income falls under the exempt category then exemption may be claimed separately. Furthermore all such individuals and legal entities should get themselves registered and obtain their NTN (National Tax Number) and tax authorities should ensure that all NTN holders file tax returns.
Some of the measures suggested by OICCI to increase the documentation and reduce tax evasion/avoidance include: Subject to legal provisions, FBR should obtain details of all customers of financial institutions whose investments exceeds a certain threshold during the year.
Art exhibition halls, hospitals, hotels holding large receptions for catwalks & sale of branded/designer dresses, airlines, travel agencies, etc should be asked to provide names and addresses of their customers beyond a minimum threshold to the FBR - FBR to regularly interact with leading tax and administrative experts to determine additional measures required for enlarging the number of tax payers and taxable entities.
"OICCI's Budget Proposals are balanced and aim at broadening the tax base, providing incentive to the honest tax payers and above all enhancing the documentation of the economy. The proposals also recommend certain structural and procedural changes to improve the overall taxation framework in the country" said by Humayun Bashir, President OICCI.
Humayun Bashir added that, to build confidence, the result of FBR's efforts on the 700,000 affluent people who were identified in 2011 as potential tax evaders/assesses should also be shared with public. He also suggested that people declaring income above Rs 10 million annually or paying taxes in excess of Rs two million annually be given special privileges and recognition cards and special counters at immigration etc.-PR
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