Fair tax system, elimination of corruption stressed to boost economy

LAHORE: There is a need to eliminate corruption in tax collectors and ensure fair tax system. New Tajir Dost Scheme is a tax-trap scheme for traders. FBR always keeps pressuring corporate and salaried-class for paying tax.

These views were expressed by the discussants in Jang Economic Session on ‘Will government satisfy the IMF by launching of Tajir Dost Scheme for traders?’ The panellists were Shahid Hassan Asad, Amin Mazhar Butt, Ashraf Bhatti, Khalid Paracha and Imran Afzal while moderated by Sikandar Lodhi.

Shahid Hassan Asad said, “IMF has no compulsion whether the tax is collected or not but we have told them all means of screwing us due to our weaknesses. Despite Nadra has all information and record, but, due to fault of system, the government can't expand our tax system.

It is imperative to ensure a documented economy at all levels in practice to improve tax base. Pakistan should move towards plastic economy to broaden the tax base. This can also solve the problem of tax collectors.” Amin Mazhar Butt said that current state of economy is due to the wrong policies of 75 years of incompetent governments.

The FBR is bound to survey the markets after every 3 months, issue NTN and collect revenue through honest survey. The country will not need any loans if the collected revenue is spent honestly, he said.

Ashraf Bhatti said everyone should pay taxes to keep the country alive. “The business community has invited the FBR to come to markets and conduct a fair survey. The government shall collect taxes by involving traders in mutual consultation. The traders will give full support.

Unfortunately, government and bureaucracy do not want to do any good work,” he said. Khalid Paracha has said tax is the issue of Pakistan, not the IMF.

It is not clear how FBR will meet the IMF tax collection targets. There is a need to create balance between income and expenditures. The tax is imposed in the name the IMF. IMF asks a fair tax system. It does not ask to burden the poor people with taxes. A fair tax system and discouraging corruption are essential, he said.

Imran Afzal said it is not a voluntary tax scheme for traders but a tax trapping programme. It is corruption to hide FBR incompetence. FBR has all the information but does not want to do anything. FBR has always put the burden of taxes on the salaried-class and businessmen. FBR burdened the people who are already in the tax net with additional taxes. The FBR should work hard to broaden the scope of the tax net and eradicate corruption, he said.