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
of Chartered Accountants of Pakistan (ICAP) he said the rates
be increased for non-filers of income tax returns in order to
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
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 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
ICAP Council Member & Fiscal Laws Committee Chairman Ashfaq
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
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