TaxPayer

Almost 90 per cent Pakistanis have been paying taxes in one or the other way. Because they do not file their return, they are not mentioned in any data, he said. Increase in the number of taxpay-ers would increase the revenue generation, he said, adding that the documentation of economy would also help increase the tax base.

He said that transport, wholesale, retail and services sectors were not paying taxes. He urged trade associations to cooperate with the FBR in order to end tax evasion. He said that the FBR had started e-filing of tax returns in 2007. Sales tax payers were also using the facility, he added.

SVP LCCI Sheikh Arshad demanded the government set its priori-ties to increase revenue generation. He said that there was no writ of government in half of the country. How the government could collect taxes from the people who even did not pay their utility bills, he asked.

He said that agriculture sector was not paying its tax despite having 22 per cent share in national GDP. Similarly, services sector was also out of tax net the share of which was 50 per cent of national GDP. He said corporate sector contributed 70 per cent of total taxes in Pakistan. “The existing tax payers have been paying double taxes than their capacity, due to non-payment of tax by the sectors”, he added.

He said that the situation would go out of control if the government did not take concrete steps. The international donors were fed up with the situation, adding that time was not far when the local taxpayers would also refuse to pay taxes.

Sheikh Arshad said that 50 per cent of registered National Tax Number (NTN) holders did not file their return. If the government ensured their tax return filing, revenue generation could register as much as 15 to 20 per cent increase.

Shahida Saleem said that economic situation of country was dete-riorating and inflation and poverty were growing rapidly. At least 80 per cent of population was now poor who could hardly meet the expenditures of basic necessities. She said that due to lack of education and awareness, people did not pay the taxes.

She said public was burdened with indirect taxes while the gov-ernment had not been spending money collected from indirect taxes on public. She suggested that the government must tax the rich to increase its revenue generation. She said that the federal government had empowered the provinces to tax the agriculture sector but they were not taking any step in this regard.

Mirza Imtiaz said that, after Hillary Clinton, the EU had also asked the FDOP to broaden the tax base. He said the tax to GDP ratio in the country was only 9 per cent while in India and China, the situa-tion was far better.

He said that the provinces had received extra Rs 480 billion after the 7th NFC award but they, rather than creating some surplus revenue, had spent it on their development plans. He said that the government had failed to develop consensus among the provinces on Reformed General Sales Tax (RGST). It was also playing hide and seek with the IMF in the implementation of the same. End to indirect taxes was a solution to broadening the tax base in Pakistan, he said, adding that the government did not have the prerequisite political will and vision for the purpose. As many as 148 parliamentarians were suspended due to non filing of details of their assets to the Election Commission of Pakistan. He said no po-litical party of country had vision to end the economic crisis and bring economy back to the growth track.

Uman Ghani said that the tax base could not be broadened be-cause of the misuse of power by parliamentarians who made such laws as exempted them from paying taxes. He said the FBR could not broaden the tax base with its existing staff. He said that 65 per cent tax revenue was spent on defense budget.

The government must make it clear to the US that the terror war was not Pakistan’s war, and America should bear all its expenses. He asked the government not to further burden the existing tax-payers to increase its revenue generation.