PEW supports FBR reforms
Separation of tax collection from policy formulation hailed
Move to infuse confidence in the business community
The Pakistan Economy Watch (PEW) Chairman Brig. Muhammad Aslam Khan (Retd) on Sunday supported reforms in the FBR terming it a positive step which will infuse confidence in the business community.
The decision to limit the role of FBR to tax collection and entrusting policymaking to Tax Policy Board is a major step in the right direction which will lessen the complaints of the taxpayers, he said.
In a statement issued here today, he said that limiting the role of tax administration was demanded by the business community which will improve the situation and reduces dependence on foreign loans.
The decision is a larger shift in the governance of the tax administration which is opposite to what the former government did that augmented the sufferings of masses, he added.
Brig. Muhammad Aslam Khan said that FBR is pushing the policy of regressive taxation as it continues to collect 82 percent taxes from masses while the ratio of direct taxation is only 18 percent which is fanning poverty.
He hoped that the Tax Policy Board will improve the taxation system to ensure equal distribution of wealth which will provide relief to masses and help expand the tax net.
At the occasion, Dr. Murtaza Mughal, President PEW said that government will form a committee which will formulate a larger tax reform framework with the help of independent tax.
He said that Prime Minister Imran Khan in his first speech promised to start the reform process with the FBR. He should also try to reduce corruption in the department and ensure that tax should be used to provide services to the taxpayer which will automatically improve the relationship between the state and the taxpayers.
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