"Unfortunately taxation has not been given proper attention in Pakistan so it became an ineffective tool to form and influence socio-economic policies," ICCI President Mehfooz Elahi said while addressing the business community here.

He was of the view that many people avoid filing tax returns due to their fear of harassment by the tax department adding that taxpayers also feel insecure because of complications in the current taxation policy and lack of trust in the present tax system.

ICCI President was of the view that the government should bring tax evaders into the tax net instead putting further burden on the existing taxpayers.

He said that the country has a potential of increasing tax to GDP ratio by 3.5 per cent in next five years by making the system, public-friendly and equitable adding widening tax net will allow reduction in tax rates, without reducing revenue.

Elahi said that the encouragement of tax culture can only take place through removal of corruption from the tax departments, which will encourage and mobilize new taxpayers who are hesitant to contribute and continue to remain outside the tax net.

Once people see the tangible benefits of the taxes they pay, then there would be a better response to tax compliance, he added.

He was of the view that public confidence could be won by improving governance, eradicating corruption and pursuing equitable tax policies.