Tax burden should be increased on favourite sectors, Zero rating for the export sector demanded
Karachi (Pakistan Point News - 29th Jan, 2020) Chairman of National Business Group of FPCCI, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance and former provincial minister Mian Zahid Hussain on Friday said national development and tax compliance cannot be ensured unless the tax rate is reduced.
Industrialization and employment generation required reduced cost of doing business which will also lure new investments for which the resumption of zero-rating facility is also required, he said.
Mian Zahid Hussain said that the tax burden on the industry must be reduced while the liability of tax on sectors paying one to two percent tax should be increased to strike a balance.
Talking to the business community, the veteran business leader said that masses accept high tax in developed countries where they get service in return while taxpayers get nothing in return in underdeveloped countries therefore tax evasion is preferred.
He noted that lack of confidence between the government and masses, corruption and wastage of tax money of fancy megaprojects also discourage taxpayers to comply.
Rich countries depend on direct taxes while indirect taxes are at lowest contrary to the poor nations where governments depend on indirect taxes like 17 percent GST in Pakistan, he observed.
He said that some finance ministers and chiefs of FBR tried to reduce indirect taxes in the past but end up increasing taxes due to ever-increasing expanses of the government.
The undue tax burden on the industrial sector is resulting in shifting of the industry to other countries and pushing industrialists to other sectors which enjoy little ration of taxes therefore the share of industry in GDP is declining which should be noticed, he said.
Mian Zahid Hussain said that Pakistan cannot attract investment in industrial sector unless the taxes are reduced.
