Large-scale tax evasion: LCCI hails govt’s announcement

LAHORE: The Lahore Chamber of Commerce and Industry on Friday welcomed the government’s recent announcement to combat large-scale tax evasion, as revealed by Federal Finance Minister Muhammad Aurangzeb and FBR Chairman Rashid Mahmood Langrial in a recent press conference that Pakistan’s top 5% of earners are responsible for evading an estimated Rs. 1.6 trillion in taxes annually.

While appreciating this move to address tax evasion, LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry stressed the need for a comprehensive approach. They called for a dual strategy including targeting tax evaders while also rewarding and motivating those taxpayers who comply with their obligations.

They said that LCCI welcomes the government’s action against the wealthy tax evaders who have been depriving the nation of its rightful revenue. The LCCI office-bearers urged the government to ensure that the announced actions against high-income tax evaders are implemented quickly and effectively. The crackdown on this group should be swift, transparent and without any compromise.

They called for the creation of a rewards system for compliant taxpayers saying that this could include tax reductions, public recognition and special business support programs to encourage continued compliance. Additionally, a “National Tax Compliance Award” could be established to honour outstanding contributors to the tax system.

Mian Abuzar Shad, Engineer Khalid Usman and Shahid Nazir Chaudhry said that LCCI advocates for including untapped sectors and individuals who earn taxable income but remain outside the formal tax system. Simplifying the tax registration and filing processes through digital platforms would encourage more individuals and businesses to join the tax net.

They said that tax enforcement should focus on evaders and not place undue pressure on honest businesses, particularly SMEs. It is crucial that the tax system is fair, transparent and does not burden compliant taxpayers.

Copyright Business Recorder, 2024