Happy taxing

Pakistan has an incredibly low percentage of taxpayers. Previous governments had not focused on increasing the number of taxpayers but due to the present financial position of our economy the new government is trying its best to increase the number of taxpayers. The government must be commended for this. However, it is important that the government and FBR proceed in a manner in which people themselves understand the need to pay taxes and do so willing.

The other day I was sitting with a group of friends, one of whom is in the business of distribution of goods to grocery stores. He said that as per the instructions received from his company, they are not supposed to supply goods to shopkeepers who do not give their CNIC. He added that at least 40 percent of the shopkeepers, many of whom have a very low turnover, have refused to give their CNIC. They are afraid of becoming filers as they think it could lead to problems for them. It is important that FBR educates them on pros and cons of becoming filers keeping in mind that many of these shopkeepers lack a formal education. Otherwise, if the shopkeepers do not get supplies they will not be able to make a decent living and the people in the supply chain would have lower sales and the manufacturers would have to cut back production. So instead of generating more taxes, the volume of taxes would be lower. The FBR should focus mainly on those retailers that have shops having over 1000 square feet of floor area.

Hussain El-Edroos

Islamabad