Friday, April 18, 2008

‘Tax base needs to be raised by 30 to 40%’

Chairman Federal Board of Revenue, Abdullah Yousaf, on Friday said there was a global change in the tax system, and policy of tax exemption was being discouraged. Ratio of tax may be lowered to bring the people in the tax net, rather than to give tax exemptions and stressed for increasing the tax base by 30 percent to40 percent.

Addressing the business community in Islamabad Chamber of Commerce and Industry (ICCI) the FBR chairman said, “ Presently there are about two million tax payers in the country and this number needs to be increased.”

Chairman proposed that Islamabad should a model tax payee city, so as to replicate this model in other cities to expand the tax base. He said that ratio of taxes has been gradually reduced which were high in the past, which helped in increasing the number of tax payers.

He appreciated the proposal of president ICCI of imposing one percent to two percent investment tax to encourage local investment, without asking the source of investment. He said that FBR would consider this proposal and would see how it could be practically implemented. On the suggestion of ICCI, Yousaf said Sales Tax form would be made simpler and would also be considered to print it in Urdu language. The FBR was encouraging e-filling and currently 25,000 people were registered for e-filling, out of which 14,000 had filed the e-returns and expected for increase in this number.

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