(Karachi P.R. 8th July, 2017) Zubair F. Tufail, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has expressed his heart-felt felicitation to Tariq Mahmood Pasha on his appointment as Chairman of the Federal Board of Revenue (FBR), for which he rightly deserved by virtue of his long and versatile experience and excellent track record of success in the field of Inland Revenue and Ministry of Finance.
The FPCCI Chief referring to the findings of the World Bank Report, ranking Pakistan’s Tax-to-GDP ratio at 12.4%, which is quite low. He hoped that the new incumbent would take long term and short term measures to gradually enhance it to its actual potential as the low ratio is mother of all economic ills such as higher taxes ; tax evasion ; thin tax-base ; exponential increase in parallel economy ; tax deficit of Rs. 3.2 trillion annually etc. He said that only 1.2 million returns are filed. “This underscores the need to bring all the sectors of the economy in tax-net and whenever the income is generated be taxed with political will as at present manufacturing sector is overly burdened (pay 70.4% of total taxes) in comparison to its contribution (20.3%) in GDP”, he added. Zubair F. Tufail proposed that FPCCI should be consulted in formulation of the tax policy to ensure its smooth implementation.
The FPCCI President urged the FBR Chief to stop field formation from arbitrary taxation and negative tactics to squeeze the existing taxpayers as was done in the past. “To achieve uphill task to collect Rs. 4 trillion tax set for the current fiscal year (2017-18), tax net must be expanded with tough measures without disturbing existing taxpayers” he added.
The FPCCI Chief was confident that the existing cordial relations between the FPCCI and the FBR would be further enhanced for the benefit of both the stakeholders –FBR and trade & industry- and assured the FBR Chairman of his full support and co-operation for the promotion of tax culture in the country.
(Dr. Iqbal Taheem)
Secretary General (Act.)