ICAP holds pre-budget seminar to share its proposals

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KARACHI, Mar. 27 (APP): Special Assistant to Prime Minister

on Finance Haroon Akhtar Khan has said that there will be no new tax in the upcoming budget and the revenue generation will focus on

increasing burden on transactions by non-filers.

Addressing the pre-budget seminar, organized by the

Institute

of Chartered Accountants of Pakistan (ICAP) he said the rates

would

be increased for non-filers of income tax returns in order to

compel

them to get registration.

He said that introduction to valuations for immovable

properties were major initiatives of Federal Board of Revenue

(FBR) which also forced this sector to get registered with the

tax authorities.

He vowed that the government will not tolerate people living

luxury life while remaining outside the tax net. He said that

data has been gathered through third-party sources and FBR was

working on it.

Haroon Akhtar hoped that the GDP growth will be around 6

percent. ‘This major breakthrough has been realized through

reducing energy shortfall,’ he said.

He said that the country was facing difficult economic

situation due to widening of current account deficit. However,

there are many other economic indicators, which are portraying

improvement in the economy, he added.

On the occasion, ICAP President Riaz A Rehman Chamdia

thanked Haroon Akhtar for giving due consideration on the

proposals. He said that the revenue collection of past five years

was impressive. ‘However, there is need to focus on broadening

the tax base,’ he said.

ICAP president said that broadening of tax base and

equitable tax system was major areas of the proposals. There is

need to review the existing taxation system for collecting tax

through adopting best international practices that are suitable

to our environment. ‘A growth enabled economy

requires efficient tax system and credible tax administration,’

he added.

He said that ICAP is committed to support a sustainable

Pakistan economy. He also offered to support the government’s

efforts in broadening the tax base and evolving equitable

taxation system.

ICAP Council Member & Fiscal Laws Committee Chairman Ashfaq

Tola

said that ICAP was not in favour of any amnesty

scheme. He said that the government should take measures for

anti-money laundering and flight of untaxed money abroad.

However, he said the government should consider giving

one-time amnesty to people for bringing back their undocumented

foreign assets back to homeland.

Tola said that the laws have been tightened around the

globe and it is difficult to park undocumented money in any

country.

Haider A Patel and Asif Kasbati, Members of ICAP

Committee on Fiscal Laws made presentations. They said that the

minimum tax had been increased to 1.25 percent through Finance

Act, 2017 from previous one percent.

Rate of minimum tax should be reduced. They also objected to

the continuation of super tax in next tax year saying it will

increase burden on companies’ earnings.

The major tax proposals of the ICAP included: reduction in

corporate tax rate from 30 percent to 25 percent; gas and

electricity tariff should be reduced to decrease cost of doing

business; incentives for tax registration; buyers and sellers of

1300CC motor cars should be brought

into tax net.

Asif Haroon, Member Committee on Fiscal Laws shared

summary of proposals.

Towards the end of the seminar, Adnan Rizvi, Chairman

SRC and Abdul Rab CPD Convener SRC joined the Chief Guest and

the President ICAP on the stage for distribution of mementos to

the speakers.

APP/pas/rap