‘Tax reforms need of the hour’

LAHORE: There is a dire need to adopt better tax policies and to lower the tax rates in Pakistan, as high rate of taxes cause economic stagnation.

Well-consulted tax reforms would help Pakistan grow faster and broaden the tax net.

This was crux of the speeches delivered at a seminar on “ Viability of Flat Taxation in Pakistan”, organised by the Lahore Chamber of Commerce and Industry on Saturday.

LCCI President Abdul Basit, Member FBR Rehmatullah Khan and Secretary Excise and Taxation Dr Ahmad Bilal attended the seminar.

There was a consensus among most of the experts that as compared to traditional tax system, a flat tax is extremely simple. Many economies are attracted to the idea of flat tax because traditional taxation system caused reduction in the economic growth, they said, adding that a flat taxation system would help fast economic growth and reduce the complexities.

Basit said that the objective of the seminar is to initiate a debate on the need to have low, flat, predictable and broad-based taxes, mainly administered through efficient tax apparatus.

The speakers were of the view that businessman pays different taxes for at least 47 times a year. This number keeps on increasing when a company is operating in other provinces, which can go to 95.