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Proposals By Business Recorder

Tax proposals for Budget 2016-17 Need for new tax model

Published on April 29, 2016These days, Federal Board of Revenue (FBR) is reportedly consulting (sic) all the stakeholders to consider only such proposals that can increase "revenues" (hopefully for the State) in the coming fiscal year. This ritualistic exercise every year brings more miseries for common Pakistanis and more hurdles for businessmen. Neither has FBR succeeded in bridging the monstrous, ever-increasing fiscal deficit by tapping the real tax potential, nor is any meaningful change offered in tax policy to help the economy to grow at a faster pace to bring prosperity for all. Tax is a by-product of growth. The government should concentrate on growth that would automatically increase taxes. For this we need a new tax model.Read full story

Essential tax reforms: Budget proposals 2015-16 - VIII

Published on June 03, 2015CHAPTER 5Read full story

Essential tax reforms: Budget proposals 2015-16 - VIII (Part-2)

Published on May 31, 201516. Income tax in respect of the Net Annual Income of a firm, or an association of persons, or a body of individuals, whether incorporated or not, where the individual shares of the partners or the members, as the case may be, in the whole or any part of income, are indeterminate or unknown, shall be charged at the rate of 30 per cent of the Net Annual Income.Read full story

Budget proposals 2015-16 - VIII: Essential tax reforms (Part-1)

Published on May 29, 2015"If we want lower taxes for growth, then spending must be curtailed so that governments won't need so much money. The next time you hear a politician promise another tax break for some special group of taxpayers, think how much that hurts the economy and you as a taxpayer. It's time to simplify the system and reduce its onerous impact that undermines economic growth"-Jack M. Mintz, the Palmer Chair of Public Policy, School of Public Policy, University of Calgary, Canada.Read full story

Tax proposals for Budget 2015-16 - VII: Need for an NTA

Published on May 22, 2015The government of Pakistan Muslim League (Nawaz), under the third-time elected Prime Minister Mian Muhammad Nawaz Sharif, will announce its third annual budget for the fiscal year 2015-16 on June 5, 2015. According to Finance Minister, Senator Ishaq Dar, Economic Survey of Pakistan would be released on June 4, 2015, as per tradition-many proclaim that both the budget and this document is nothing more than a mere ritual which would make no difference in the life of the common people, who are bearing the main brunt of exorbitant indirect taxes in Pakistan while the rich are not paying personal income tax-according to Tax Directory 2014 and Active Taxpayers' List placed on the website of Federal Board of Revenue (FBR) only a few thousand rich, file income tax returns and the quantum of admitted tax is laughable.Read full story

Budget proposals - VI: No SROs please!

Published on May 15, 2015The Finance Minister, Senator Ishaq Dar, in a press conference held on May 11, 2015, claimed that through recently-promulgated Finance (Amendment) Ordinance, 2015, power of Federal Board of Revenue (FBR) to grant concessions/exemptions through Statutory Regulatory Orders (SROs) has been withdrawn. He claimed that these have now been transferred to the Economic Co-ordination Committee (ECC) of Cabinet in exceptional circumstances. The text of this Ordinance is not made available till the writing of these lines. Thus, the comments on the Finance (Amendment) Ordinance, 2015 are based on Press reports.Read full story

Budget proposals - V: Taxes and economic justice

Published on May 08, 2015Distributive justice or economic justice is an important function of tax policy. Economic justice relates largely to distribution of tax burden and benefits of public expenditure. It is a component of the broader concept of social justice, which encompasses, besides distributive justice, such questions as treatment of less privileged sections, empowerment of women, protection of children, and many other areas like racial, lingual, religious tolerance in a society.Read full story

Tax proposals for Budget 2015 - IV: How to increase return filers

Published on May 01, 2015There is a gradual and disturbing decrease in the number of income tax filers, though over 50 million Pakistanis are paying advance income tax at source. Federal Board of Revenue (FBR) has recently released the figures claiming that out of 282,180 notices issued so far to potential taxpayers, only 54,790 filed income tax returns with payment of only Rs 442 million. However, no explanation is given why the number of return filers has decreased from 1,443,414 in 2011 to 856,229 in 2014.Read full story

Tax proposals - III

Published on April 24, 2015The existing tax system is highly unjust as it protects the rich and heavily taxes the poor. This cruel taxation is meant to finance the luxuries of militro-judicial-civil complex and politicians. The mighty sections of society not only enjoy tax-free benefits but also amass more and more wealth. They get State lands at either throwaway prices or free as awards. It is tragic that in a country where billions of rupees exchange hands daily in speculative transactions in real estate and shares, tax-to-GDP ratio is pathetically low at 9.6%. However, the Government is least bothered to tax undocumented economy and benami transactions. Since the mighty sections of society are engaged in these transactions, Federal Board of Revenue (FBR), being their handmaid, has no will to tax them. It is evident from Tax Directory 2014 published on 10 April 2015 showing only 52,349 persons in whole of Pakistan admitting tax liability of more than Rs 500,000!Read full story

Tax proposals for Budget 2015 - II

Published on April 17, 2015During the last many years before the announcement of annual federal budget, plethora of proposals are solicited by Federal Board of Revenue (FBR) from trade and professional bodies, tax bars and representatives of various industries. This practice is not serving any useful purpose as in the end a few self-acclaimed all-knowing in FBR decide "what should be included" in the Finance Bill. The Tax Commission and Tax Advisory Committee having highly competent people will also not be in a position to dislodge these "all-knowing" wizards of FBR. The Parliament should immediately amend Federal Board of Revenue Act, 2005 to establish a Board of Directors having 50 percent representation from the public. This should act as a permanent Policy Board.Read full story

Budget FY16: tax proposals by SDPI

Published on April 16, 2015Our proposed interventions which have been discussed in our consultations and latter evaluated through the macro model indicate that with minimum fiscal effort (explained below), removal of distortions, and better documentation of economic sectors, federal and provincial revenue authorities can collectively achieve PKR 700 billion additional tax revenues.If the economy is able to achieve a real GDP growth of 5% in 2015-16 these revenues can increase depending upon the sectoral growth elasticities (with respect to revenue collection).Read full story

Tax proposals for Budget 2015 - I

Published on April 10, 2015In a highly encouraging move, Federal Board of Revenue (FBR) has decided to consider all such budget proposals that can enhance revenues in the coming fiscal year. We have been in these columns presenting some concrete measures for collection of revenues to the extent of Rs 8 trillion at federal level alone and will continue to do so in the coming weeks till the time Budget 2015-16 is to be announced. FBR, however, must realise that there is no dearth of rational and viable proposals. The real issue is lack of willingness to enforce tax obligations and establishment of a revenue agency that can win the hearts of the masses ensuring them that: "We make sure that the money is available to fund the public services by collecting taxes and duties as laid down by Parliament. We want to give you a service that is evenhanded, accurate and based on mutual trust and respect. We also want to make it as easy as we can for you to get things right." This alone can persuade people to discharge their tax liabilities voluntarily and happily.Read full story

PBC's proposals for the Federal Budget 2014-15

Published on March 27, 2014The Pakistan Business Council: Established in 2005 by 14 (now 45) of Pakistan''s largest private sector business groups including multinationals.Read full story