ISLAMABAD
The Friends of Economic and Business Reforms (FEBR) has said that the mini budget will increase the cost of businesses by 17 percent, as the FBR has shifted many exempted and zero-rated goods to flat general sales tax rate of 17 percent which will spur the inflation further.
FEBR President Kashif Anwar said that the FBR could not succeed in broadening the tax net resulting in squeezing existing tax payers. Pakistan lacks culture of tax compliance due to unfair taxation system. Harmful taxation that hinders business and trade in the country should be eliminated. We firmly believe that broad based reforms in taxation system with the consultation of private sector are need of the hour. Instead of enhancing the tax base, government’s total focus is on those who are already in the tax net. First of all, the FBR should go against those whose information is with them and who are not filing their tax returns.
He said that the FEBR has been pointing out to bring those retailers into the tax net whose area of shop is more than 1000 sq ft as there is no correlation of area with sales.
