Reforms suggested to broaden tax base
ISLAMABAD: (APP) Reforms suggested to broaden tax base
The Institute of Chartered Accountants of Pakistan (ICAP) has submitted key recommendations regarding the budget 2016-17 to the government.
The prime objective of these proposals is to assist the government in improving revenue collections, ensuring voluntary tax compliance and building tax payers' confidence leading towards tax compliant culture,' said Chairman ICAP taxation Committee, Rashid Ibrahim, while talking to media on Wednesday.
He said there is consensus amongst the tax experts that most of the problems are stemming from weakness in the effective implementation of fiscal laws.
He said that the corporate sector which is the most documented segment of the economy has been neglected, said Rashid.
The service, wholesale/retail, transport and the agriculture business sectors are still not fully documented hence their contribution to the national exchequer is negligible and majority are out of the tax net,' added Rashid.
There is urgent need of capacity building of the field formation officers with specialized training to undertake the challenges of tax audit, said Rashid.
He informed that recently a delegation of ICAP met Advisor to the Prime Minister, Haroon Akhtar Khan, Member IR (Operations) FBR Rahmatullah Wazir and other officials to discuss budget proposals and recommendations prepared by ICAP.