ISLAMABAD: Member (Inland Revenue) Federal Board of Revenue, Khawar Khurshid Butt said on Monday that the real challenge being confronted by the country is to revamp the taxation system to survive as a successful nation.
According to a private TV channel, he said there is a need to get rid of foreign debts by strengthening the tax base.
He said the basic purpose of any tax reform is to generate more and more revenue.
"We need to change our tax structure. We need to enhance capacity building as we have done so much work since 5 to 6 years", he said.
He said the basic purpose of tax reforms is to bring changes in the mindset.
"We have done partial success in the tax reform system as it can be done only by increasing tax ratio. We need to improve voluntary compliances, data ware house and involvement of third party to achieve the required objectives."
He said GDP ratio should not be lessen from 15 to 16 per cent. In developed societies it is 35 and 40 per cent .The total GDP is not even 10 per cent.
"We need to enhance our deterrence. We have to do partial audit. We have to do work on voluntary compliance that needs third party match.
We are alive, vibrant, and active to work on the incentives of the tax reforms" he added.
He said internationally the situation requires extra efforts for the field formation. We need to come up to the expectation of the nation.
He said the best model for the tax reforms is to increase the tax rate. There are bangalows, cares but when we see their taxation that is not working adequately.
"We need to organized our system where we can have third party information which prepare data on higher basis and develop detterence level. We need to develop tax facilitations centres as its an honorary work. FBR need to do extra efforts to work on taxation and revenue for their incorporation in the upcoming budget."
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