ISLAMABAD: The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) President Atif Ikram Sheikh and Chairman Anomaly Committee (Business) Federal Board of Revenue (FBR) Gohar Ijaz strongly recommended to the FBR to impose 30 percent tax on the bank deposits of non-filers under the taxation reforms agenda.
Addressing a press conference on the FBR’s Anomaly Committee at the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) Headquarters here on Monday, Gohar Ijaz stated that the government must impose 30 percent tax on black money of non-filers.
Around 90 percent money of non-filers in banks is black money. Instead of banning foreign travel, non-filers should not be allowed to withdraw money from banks till they deposit 30 percent tax and become filers.
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Atif Ikram while talking about the budget anomalies, said 30% tax be imposed on the money kept in banks by non-filers – Rs13 trillion will be collected in a day.
Gohar stated that the government has imposed taxes of Rs 2 trillion on the general public. At the same time, the government must immediately cut its expenditures by 4.33 percent of the gross domestic product (GDP) and submit its plan in the National Assembly.
The agreements with the Independent Power Producers (IPPs) should be terminated immediately, he added.
If agriculture is a provincial matter, the federal government can introduce usher system and impose Ushr tax on agricultural income, instead of burdening salaried class and exporters, Gohar added.
Atif rejected the concept of late-filers and non-filers saying everyone should be a filer.
“We can take the number of return filers up to 50 million by introducing a simple tax return form of five lines or one-page under self-assessment scheme,” he added. Sheikh stated that we are not seeking any subsidies from the government, but all persons earning income should be made filers for equitable taxation.
The FPCCI has outrightly rejected the Finance Bill proposal of the FBR to treat businessmen involved in fraudulent activities should be punishable up to 10 years with non-bailable offence.
The business-friendly scheme is good, but the non-bailable warrants are reprehensible. The tax culture has to be made respectable, he said.
The FPCCI has also rejected the change in the tax regime for exporters.
The FBR’s Anomaly Committee also recommended restoration of zero-rating regime on petroleum products to enable them to adjust input sales tax.
The committee rejected the FBR’s proposal of 5 percent federal excise duty on commercial properties and first sale of residential properties, as the FED is a federal subject.
The FBR’s Anomaly Committee also recommended restoration of exemption on medical supplies to charitable supplies to chartable hospitals.
On this occasion, Pattern Chief UB SM Tanveer, Senior Vice President Saqib Fayyaz Magu, Vice Presidents Zaki Ejaz, Tariq Jadoon, Aoun Ali Syed, Capital Office Chairman Karim Aziz Malik, Coordination Chairman Malik Sohail Hussain, Mian Zahid Hussain, Ahmed Jawad, Habibullah Zahid and others were also present.
Copyright Business Recorder, 2024