ISLAMABAD: The Pakistan Business Forum (PBF) has opposed restricting public facilities to citizens ineligible for failure to file tax returns, saying the proposed law appeared to go against fundamental rights enshrined in the constitution.
In a statement, the PBF, a nationwide nonprofit trade and industry association, instead proposed that tax returns be simplified to a single page, as was the case in many other developing and advanced countries. , because cumbersome tax return forms were one of the key reasons behind poor tax compliance.
He demanded that the proposed tax bill be seen in the context of the constitution and that the federal government restructure the Federal Board of Revenue (FBR) and increase the use of technology.
Under the Tax Laws (Amendment) Bill, 2024, authorities are seeking restrictions on the purchase of immovable property and vehicles beyond certain limits without justifiable resources and tax-compliant assets to broaden the tax base.
The government “should introduce a new, simple and easy-to-use single-page tax return form. Before passing new tax laws, efforts should be made to facilitate the process of filing tax returns,” he said, adding that the category of non-filers was also the government’s own creation.
PBF vice president Ahmad Jawad said the forum is submitting a draft simplified tax return to the government. He highlighted that the complex tax filing system is a key reason for the stagnation of taxpayer growth.
Furthermore, tax reforms and currency strengthening should be part of the five-year ‘Uraan Pakistan’ programme, the PBF said, adding that granting broad powers to tax authorities to enforce the proposed new tax laws would lead to further public unrest. .
The PDP suggested that economic growth would accelerate if all stakeholders agreed on four or five key issues, including the Economy Charter. Recommending the government to focus on growth in the agricultural sector, the PBF said the country’s gross domestic product (GDP) growth rate would reach 8 percent only when agricultural growth contributes 5 percent to the economy. .
He said 2024 was a challenging year for the business community and the public, given high electricity bills and high interest rates. Therefore, the government should announce a clear and viable economic roadmap to 2025 to alleviate these challenges. “Pakistan is no longer a business-friendly country,” the statement said, calling for a collective approach to address these issues.
He noted that despite the second IMF program in quick succession, the rupee had failed to strengthen and the government must take immediate and decisive steps to stabilize the currency. “Without strengthening the rupee, efforts to reduce financial pressures will remain ineffective.”
Published in Dawn, December 31, 2024
