FAISALABAD: Dr. Khurram Tariq President Faisalabad Chamber of Commerce & Industry (FCCI) has welcomed the court decision declaring recovery of unadjustable advance tax from persons with non taxable income.
He said that rationales and priorities of tax related legislation should be improved with the focus on bridging the gap between have and have-nots which is creating social distortions in our society. He said that revenue collection is dependent on indirect taxes and at present 70% collection is generated through indirect taxes. He said that the same rate of sales tax is applicable to everyone regardless of their income or earning which is not justifiable. He said that the government must amend these laws with focus on direct taxes as it is imperative to create a balanced society in the country.
He said that the Finance Ministry and FBR are fully aware of social disparities but they failed to take practical steps to remove the prevalent anomalies. Quoting an example, he said that cart drivers and informal servants have to use mobile phones despite low income but the same rate of sales tax is charged for them and it is never adjusted or paid to the concerned individual. He said that tax should not be a source of income but it should be a by-product of economic activity.
Copyright Business Recorder, 2022