Rs5.9trn fiscal target: Already taxed shouldn’t be issued notices: analyst

KARACHI: It is understandable that IMF has been asking for Rs5.96 trillion tax collection for the next fiscal year and budget focus would be raising the Tax to GDP Ratio but it does not mean that already “tax payer” should be influenced by receiving untimely notices to produce tax records despite timely submission of the returns and audits, said Ateeq ur Rehman, Economic & Financial analyst.

Government needs to seriously work out a plan and formulate a sincere policy to ensure respect to the already taxed. Adherence to law and due diligence must be followed in respect of “Tax Payer”.

It is requested that a “tax payer” should be issued a privilege card to be produced when needed at airports, railway stations, bus booking stands, hospitals, pharmacies, laboratories, etc to create convenience.

This in recognition and token of respect for being a “Tax Payer” and attracting the others to become a “Tax Payer”.

He added that Finance Minister Shaukat Tarin said that government will seek to increase revenue without taxing the already taxed and there will be no taxation hike in FY22 budget, this is quite encouraging and government should follow two ways of generating revenue that is through duties / taxes and growth of exports.

This is only possible once we massively grow our exports and reduce our external debts and cost of our energy. IMF projected USD 23.63 billion as our exports. Pakistan Exports only achieved USD 25 billion mark in 2013 after that exports never reached that high level. We need to increase export to USD 50 billion, at least in this fiscal year.

Copyright Business Recorder, 2021