Proposed mini budget
\n Lahore
\nThe Pakistan Industrial and Traders Associations Front (PIAF), while expressing serious concern over the proposed mini-budget to raise revenue by further enhancing the ratio of existing taxes, has asked the government to tighten its own belt rather than continuing its previous policy of burdening the trade and industry through further indirect taxation that would devastate the economy, given the appalling state of the economy and menacingly high inflation.
\nPIAF Chairman Faheem ur Rehman Saigol said that the pressure of new taxes will be on the businessmen, as tariffs, particularly on gas and electricity, are expected to rise significantly as part of the IMF condition to achieve full cost recovery rather than to focus on dealing with sectoral inefficiencies.
\nTo increase leverage with the Fund the government has been advised to slash the 8.6 trillion rupee budgeted current expenditure for the year against 7 trillion rupees budgeted last year, an option that appears to not be in consideration.
\nFaheem Saigol said that the decision may have severe socio-economic implications attributable to a 24.5 percent Consumer Price Index, besides lower output due to administrative and exchange restrictions that are negatively impacting on raw material imports and therefore on unemployment levels.
\nThe PIAF Chairman observed that the tax compliance should be improved and tax base should be enhanced, which cannot be achieved with a single policy change, but through a systemic approach. He said that businesses are already in a complicated state-of-affairs, while anti-business actions against business community will not only add to the miseries of the business community but also promote trust deficit between the government and the business community.
\nHe said that in the past instead of focusing on controlling under-invoicing, curbing smuggling and expanding the tax net, the FBR seems to be inclined to pressurize registered taxpayers, who are already suffering due to a high rate of sales tax, income tax, and custom duties by creating fictitious cases for recovery of outstanding dues to meet revenue target.
\nThe PIAF Chairman also endorsed the government plan of FBR reforms to expand the tax base under a fully-automated system, which should need to be improved as it has still many flaws. He said that making the FBR stronger through improved tax collection will be immensely beneficial for the country.
\nHe called for building a structure in the country, which is in accordance with the requirements of time, as it is easy to weaken institutions but it takes a long time to rebuild them. Whatever appointments government makes to the heads of the institutions should be based on transparency and merit, he said.
\nurged the Federal Board of Revenue to immediately stop issuing notices to businessmen, as it is not only creating undue harassment among them but also giving a bad name to the government.
\nThe businessmen are doing their best to makeup the losses incurred during this critical situation, the PIAF Chairman said, adding that the PIAF feels that issuance of notices to the exporters, who are demanding refunds, will put a halt to the process of economic recovery. He said that only direct taxes can improve tax collection, as the existing tax system is heavily skewed toward indirect taxation.
\nPIAF chairman said the registered businesses are required to comply with various departments involving a lot of financial and time resources, whereas unregistered businesses are free from all such hassles, he maintained. He also emphasized that concentrating on import substitution is imperative to narrow import bills and certain imported products such as oil are of a fixed nature, therefore, the government needs to enhance focus on import substitution industries, as chemicals, agriculture and steel are potential industries. <\/p>\n","protected":false},"excerpt":{"rendered":"
Proposed mini budget Lahore The Pakistan Industrial and Traders Associations Front (PIAF), while expressing serious concern over the proposed mini-budget to raise revenue by further enhancing the ratio of existing taxes, has asked the government to tighten its own belt rather than continuing its previous policy of burdening the trade and industry through further indirect […]<\/p>\n","protected":false},"author":2,"featured_media":307358,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-307341","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n