Wednesday, April 15, 2015 Serena Hotel, Faisalabad
Presented By :
Kashif Mateen Ansari
Wednesday, April 15, 2015
Serena Hotel, Faisalabad
at a Glance
National and Social Issues
Who can forget 16th December, 2014
Even our Children are not Safe
High Cost of
Lack of Research
“My problem lies in reconciling my gross habits with my net
income.” — Errol Flynn
Law & Order
Health and primary education
Higher education and training
Goods market efficiency
Labor market efficiency
Financial market development
Standing in the
World (as on 2008)
Natural Gas Reserves
Nuclear Power Generation Capacity
But we are
need to do …
Minimize the gap between ‘revenue’
and ‘expenditure’ by taking
measures to broaden the tax net.
This would help increase the tax to
Need to reduce the Trust Deficit so
that the People willingly fulfill their
Tax Obligations. The tax collection
services shall be accurate and based
on mutual trust and respect.
Repositioning of image of revenue
collection authority as partner in
country’s progress rather than agent
taking away the hard-earned money.
Enabling System for Taxpayers to pay
No additional tax burden on existing
tax payers, especially corporate
sector. This would encourage
business activities and investment in
Bring the undocumented sector under
the tax net. This can be achieved by
reducing the cumbersome processes and
doing away with rampant corruption in
Enhance the role of professional
institutions like ICMAP, who can
provide professional backbone for
the processes of good governance,
audit and review.
Increase the allocations for health,
education, housing and transport to
improve the quality and standard of
living of the common people.
In order to meet budgetary targets
we have resorted to oppressive
taxes, shifting incidence on the
poorer segments of society and
exempting the rich.
Adopt austerity measures and cut
expenditures, without jeopardizing
the goals of economic growth.
A single ‘Business Registration
Authority’ may be established for
maintaining complete data base of
An Independent statutory body may be
established to propose amendment in tax
laws. The amendments in tax laws should be
finalized a month before tabling the Finance
Bill in the parliament and disseminated for
comments from the stakeholders.
Regressive Taxation shall be avoided.
Since 1991, distortion in tax base
increased the burden of taxes on the
poor. By some estimations this figure is
38 percent whereas on the rich it stands
reduced by 18 percent.
[It is a system in which those with low incomes
pay proportionally higher taxes than the wealthy.]
Over reliance on indirect taxes has
contributed in pushing an
overwhelming majority of Pakistanis
towards the poverty line. Their
number is now more than 60 million.
This need to be fixed and adequately
The Retail sector should be brought
under tax net by offering some
incentives. They may be required to
update stock daily and pay one
percent tax on all kinds of purchases.
FBR should impose tax on medium and
heavy transporters. As their income is
not verifiable, they should be charged a
fixed annual tax i.e. Rs. 10,000/ ‐ for
medium transporters and Rs. 15,000/ ‐
to 25,000/‐ for heavy transporters.
Keeping in view of high increase in
general price level, the basic tax
exemption limit for salaried class
persons be enhanced from present Rs.
400,000 to Rs.500,000 per annum (i.e.
Rs.41,666/‐ per month).
Salaried class may be allowed tax credits on
expenditure on education of their children
as well as tax credit on their actual
expenditure on account of utilities (i.e.
electricity, gas, telephone and water bills).
The government should consider to
provide tax holidays and incentives
to innovative and new industries,
especially those established in
Provinces should also tax rich
landowners and collect tax on all
services but at a low rate of 5%.
Tax rebate to teachers and
researchers should be brought to
previous level of 75% in consonance
with government’ policy to promote
education and research.
Professional service providers, who by their
governing statutes, are not allowed to get
incorporated, should be excluded from
ambit of 'minimum tax' or they may be
allowed to carry forward such minimum tax
for next five tax years.
Currently, income tax exemption is
granted on export of IT related
services. Export of services by
professionals like engineers, architects
and accountants should also be exempt.
The current rate of 17% sales tax is
comparatively higher in region . It
should be brought down to single digit
and it should be non‐adjustable and
non‐refundable. This would help in
improving tax collection.
Sales tax should be collected at single stage
i.e. at import or manufacturing stage. In the
value‐added chain industry, GST should be
collected at 0.5% at each stage of value
addition to complete the chain. This would
help in the documentation of economy.
The authority to block bank accounts or
suspend or block sales tax registration/
NTN No. shall only be vested in Regional
Commissioners or DG, LTU and this
authority should not be allowed to be
delegated to any subordinate officer.
The Sales tax Act does not contain any provision
for allowing adjustment in respect of bad debts
after deposit of sales tax. It is suggested that
either special provisions be inserted to allow
such adjustments whenever it occurs or the
time limits for issuing of credit and debit note
be extended up to 365 days.
There should be a comprehensive list
of inadmissible goods and service in
the Sales Tax Act, 1990.
Find ways to handle
Rapid industrial and economic
growth and socio-economic justice
should be our main objectives. Tax
being a by-product will automatically
Before I Conclude, I would say …
According to O’Neill’s projections, Pakistan’s economy
would grow 15 times in the next 35 years or so to
become 18th largest economy of the world by 2050. We
shall take measures now to give a Prosperous Pakistan
to our coming Generations …