Govt urged to revive taxpayers’ trust to increase revenue

LAHORE: The government needs to revive the taxpayers trust in it besides making a balanced taxation policy for the economic growth of Pakistan while apparently it seems that the government has been maintaining the previous government taxation policy which is adversely cutting down the purchasing power of the commoners and increasing the problems of the industry and trade.

These views were expressed by the experts in Jang Economic Session on ‘how to create trust between taxpayers and collection for the revival of the economic activities’. The panellists were Ansar Javeed, Imran Afzal, Monem Sultan, Shakeela Banoo, Farooq Tariq and Ameen Mazhar Butt. The session was hosted by Sikandar Lodhi.

Ansar Javeed said that trust and mistrust are correlated in society and there was need to create a positive balance between the two to discourage the corruption. He said changing the mindset and system is the need of the hour for revival of the trust. He stressed the need of increasing dependence on indigenous resources and taking all stakeholders on board while making system transparent for everyone can be helpful in achieving required targets.

He said political instability was adversely affecting the economy, market situation worsened badly, rupee depreciated, poverty, unemployment growing alarmingly, and to avoid this curbing corruption and smuggling is unavoidable.

Imran Afzal said that both tax collectors and tax evaders are responsible for failure to achieve tax collection targets. He called for changing human behaviour and approach to increase tax revenue and national income for which the government should ensure continuity in taxation policy and implementation of it with equality with effective reforms. He lamented protecting individuals at the cost of the institutions while self-accountability is also required.

Monem Sultan said that change from inside was required for tax collection while currently it seems that the government and FBR focused on achieving the revenue target, not broadening the tax net. He said balanced policies, revival of trust and political commitment was required for economic stability while Iran model was good example to change human behaviour for national interest. He said burdening the existing taxpayers was incorrect while political stability and ending mistrust atmosphere should be the top priority of the government.

Shakeela Banoo said that creating trust among public was crucial to expand tax base and state fulfil its responsibility for provision of public rights. She said public has mistrust with the utilisation of tax money which needs to end, besides creating difference of services between the taxpayers and non-taxpayers this will encourage the people to pay taxes. She said people avoid taxes due to complex taxation system and afraid of coming into tax net.

Farooq Tariq said that the government harassed the trader community through operation against encroachments which created uncertainty among public and made it difficult to collect taxes. He said provision of equal rights was responsibility of the state so biased approaches should be avoided while citizens should also pay their taxes to run the state. He said that the government should ease taxation system and focus on direct taxes instead of indirect taxes. He called for increasing spending on health, education and increase in salaries and income.

Ameen Mazhar Butt said that 50 percent of purchasing power was affected after rupee depreciation and increase in inflation while majority of people are fighting for their survival. He demanded the government make a new team and evolve new principles.