PTBA seeks a database for expanding tax base.
KARACHI, May 02, 2009 (Balochistan Times) -- Pakistan Tax Bar Association (PTBA) has suggested the government to prepare a data base of all the owners of property, automobiles, credit cards, investment in fixed deposits, national saving schemes and stocks and club memberships and create a corporate profile to expand countrys tax base. In its tax proposals for the forthcoming federal budget, the association said that national tax number (NTN) should be made mandatory for purchase, sale and transfer of immoveable property, automobiles, club membership, credit cards, registration with CDC and distribution of profit or mark up. The association has proposed to gradually reduce the concept of presumptive tax and only real income should be taxed. The tax bar noted that corporate taxes were very high in Pakistan compare to other developing countries and urged the FBR to cut tax rate by 5 percent for corporate and non-corporate sectors. The bar also proposed the FBR to raise the present statutory limit of exemption under the income tax law from Rs 100,000 to Rs 200,000. PTBA suggested the government to exempt the import of plant and machinery from withholding tax under section 148. It also suggested to avoid multiplicity of taxes on corporate sector which raises the total tax rate from 35 percent to 42 percent. PTBA said that it was willing to work with the government to expand tax to GDP ratio as by bringing in some vital and under-taxed sectors in tax net in accordance with their contribution to GDP. Agriculture sector contributes 20.9 percent to GDP while its share in taxes is only 1.2 percent. Manufacturing sector on the other hand contributes 18.9 percent to the GDP while its share in taxes is 62.2 percent. Similarly, wholesale and retail trade has a share of 17.1 percent in GDP while its contribution to taxes is only 2.8 percent. Transport, storage and communication and social services sectors also have the similar tendencies.
(THROUGH ASIA PULSE)
(THROUGH ASIA PULSE)
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|Publication:||Balochistan Times (Baluchistan Province, Pakistan)|
|Date:||May 2, 2009|
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