FBR asked to win confidence of taxpayers
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Authorities shouldnt tax patience of masses
The Pakistan Economy Watch (PEW) on Thursday said Federal Board of Revenue (FBR) needs to win confidence of taxpayers to overcome image problem and overcome menace of low revenue collection.
The public image of apex tax authority remains fragile as majority of taxpayers see it with suspicion, it said.
Allegations of lack of integrity, wastage of funds, misrepresentation, inefficiency, indiscipline and arrogance has created a gulf between tax collectors and taxpayers that need to be bridged through serious efforts, said Fahim Talib Butt, Vice President Legal Affairs of the PEW.
He said that industrialists feel that they pay too much of taxes while majority believe that the amount they give to the government as tax is not properly utilised.
Taxpayers don’t want to pay for the princely living of the people who earn billions but enjoy tax relaxations, said Fahim Talib Butt. This has contributed to general discontent that has resulted in falling tax-to-GDP ratio.
These are some of the reasons behind disappointing performance of FBR as far as achieving targets, widening of tax base, checking evasion, recovering arrears, or initiating meaningful reforms are concerned, he added.
At the occasion, Dr. Murtaza Mughal, President of the PEW said that frequent false claims of achieving or exceeding revenue collection targets has added to the unpopularity of the institution.
He said that over-reporting of figures and exaggeration in number of people who file returns has never helped FBR authorities.
Shifting tax burden from the rich to the poor is cruelty, said Dr. Murtaza Mughal adding that hurting fragile industrial and business environment and serving rich has made FBR a tool of oppression, he said.
Squeezing those who earn income below taxable limit while ignoring millionaires is inhuman, he added.
The intelligence and audit system of the tax body has become highly inefficient contributing only 8 per cent of the total collections. Over and under invoicing, penalising existing taxpayers while cooperating with tax evaders has become a standard practice, he alleged.
Dr. Murtaza Mughal said situation will not improve unless FBR decides put its house in order. It should reveal names of parliamentarians, businessmen, and bureaucrats, enjoying luxuries and paying mobile phone and utility bills in millions but not paying taxes.
It should take to task professionals making millions but hiding their real income, he demanded.
