KARACHI: Chairman of National Business Group and President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain has said that the government should explore options of reducing the size of the undocumented economy to meet the target agreed with IMF.
He said the tax target for the incoming fiscal should be reviewed as it will result in additional stress on the masses and Federal Board of Revenue (FBR).
Economy and the business community is not in shape to bear the burden of Rs6100 billion unrealistic target which will be stressful for the tax officials as it will widen the gulf between FBR and taxpayers while open floodgates for litigation, he said.
He said that many businesses are not registered while underreporting is common practice.
Whenever government tries to measure production of any sector for proper taxation, a reduction in production is used as a tool to foil the designs of tax collectors, he added.
He said that retailers use their “shutter power” to avoid taxes while political interference and parallel banking system is blocking imposition and collection of taxes on agricultural income.
Landlords and middlemen prefer cash transactions which make it difficult to tax the agriculture sector, having a substantial portion of the GDP, which results in an additional burden of taxes on industry and other sectors.
Copyright Business Recorder, 2021
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