Speakers at a pre-budget seminar stressed upon enlarging the tax base, reducing unnecessary tax exemptions and making tax compliance easy for common taxpayers. They were speaking at a pre-budget seminar organised by Southern Regional Committee (SRC) of Institute of Chartered Accountants of Pakistan (ICAP) held at a local hotel here on Thursday.
Naveed Andrabi, advocate Supreme Court of Pakistan urged the authorities concerned to reduce multiple tax collections and plug the loopholes in tax laws. He proposed the authority to rationalise minimum taxation and salary taxation and fair application in selection of audit.
He emphasised that the accountant member appointed in Appellate Tribunal should be under the umbrella of Ministry of Law and should not revert back to Federal Board of Revenue as this will facilitate fair justice and would enhance the credibility of Appellate Tribunal.
Syed Shabbar Zaidi, Tax Partner A F Ferguson & Co was of the view that presently the country was trapped in a vicious circle involving revenue shortfall, government borrowing, high discount rate, dim investment climate, higher inflation and resultant bleak industrial activity. He said the economic stability cannot be sustained unless we bring untaxed sectors into tax net, make social reforms and ensure minimum budgetary expenditure on health, education and safety.
In his concluding address, Khawar Khursheed Butt, Member Inland Revenue of FBR said that the board was cognisant to the stakeholders' need. In this respect, he highlighted the need for greater automation for consolidation of data base. He admitted that tax managers were lacking in audit capacity but agreed that audit should be conducted to create deterrence and should not be a recovery measure for the government.
About upcoming budget, Butt said the FBR was aware of the problems being faced by salaried class and assured that they would be accommodated in the coming budget. He categorically announced that the board is there for collection of due taxes in the strict framework of applicable tax laws. The seminar was largely attended by ICAP members, eminent professionals and representatives of trade & industry.