Voluntary tax compliance scheme to help increase tax net: Ishaq Dar

Rawalpindi

Federal Finance Minister Ishaq Dar has said that Voluntary Tax Compliance Scheme will help in broadening the tax net and increase the revenue and this will result in low taxation in future. This scheme should not be called as whitening the black money.

He was addressing a meeting of traders organised by Rawalpindi Chamber of Commerce and Industry (RCCI). The meeting was also attended by PM Special Assistant on Revenue, Haroon Akhtar and FBR Chairman Nisar Muhammad Khan, RCCI President Mian Humayun Parvez, Senior Vice President Saqib Rafiq, Vice President Muhammad Aqil Obaid, group leaders, RCCI former president and members of the executive committee and trader’s organisations heads and community.

The finance minister has said earlier, opposition was against this scheme and calling it as immoral but later on they start crying and urged government to broaden this scheme to other sectors. The country was on the verge of defaulter when we took over the charge. International financial institutions who were downgrading the country’s ranking now acknowledged our government efforts.

He said "Now our outlook has been turned into positive from negative. We lowered the budget deficit from 8.8% to 4.5% and growth rate has been increased to above 4% from 3.2% and we are hoping to meet the target of 5.0 %. Foreign reserves which were dropped to 4 billion dollar now jumped up to four times. Banks have 14 billion dollar. Our policies were acknowledged by World Bank president, who recently visited Pakistan. Our macroeconomic indicators are showing healthy signs.  I would request opposition to join us and sign a charter of economy. We want to make Pakistan a prosperous and leading economy in the world."

The finance minister appreciated the role of RCCI for organising the meeting and said that we will add your suggestion in the budget. It’s our collective responsibility to make this scheme a success. On refund claims he said that by March 15 we will clear 33000 exporters’ refunds that have a claim up to 5 million.

Special Assistant on Revenue Haroon Akhtar said that inflation is dropped to lower and currently it is at 2.5 %. The FBR is now been called as friendly board of revenue as we are coming to door steps of traders, which was never seen in the past. Voluntary Tax Compliance Scheme is remarkable one. We accepted traders demands, and now they are not required to go for sales tax registration, no withholding agent and no audit for 4 years under this scheme.

Earlier, the RCCI president, in his address, said that RCCI is the only chamber in the country who work across the board irrespective of the affiliations and associations of different businesses with business organizations.  He said that the business community has demanded, “Tax rate should be low and as much as uniform as possible to create a regional competitiveness to boost business in domestic and regional markets”.

He said that direct taxation is the only principal of progressive taxation while the indirect taxes (especially on essential items) at the higher rate of 17 %, is against the principal of equitable and fair taxation, means the items which are equally in use in the higher class as well in the lower class, at the standard rate of sales tax is against the principal of natural justice, it is suggested that the essential items (locally manufactured) must be free from indirect taxes like medicines etc. “We demand energy supply at competitive rates,” he urged.

In the end RCCI president awarded a souvenir to Federal Minister Ishaq Dar for addressing traders concerns and acknowledging his efforts.