Business

ICCI chief calls for fixed tax regime


ISLAMABAD:

Islamabad Chamber of Commerce and Industry President Sardar Yasir Ilyas Khan has called upon the government to introduce a fixed tax regime for traders in the upcoming budget and end the condition of CNIC on sale that would help in promoting documented economy and increasing tax revenue. He said that the retail sector was contributing around 20% to GDP and introducing a fixed tax regime would be a great initiative to broaden the tax base of the country besides making significant improvement in tax-to-GDP ratio. Khan added that the best option for the government to increase tax revenue is to avoid putting more tax burden on existing taxpayers and focus on broadening the tax base with low tax rates. ICCI chief said that high tax rates in Pakistan were a major hurdle in promoting tax culture and bringing more people into the tax net as high tax rates always encouraged tax evasion. Therefore, the government should focus on rationalisation of taxes to make them affordable for taxpayers that would be helpful in promoting tax compliance across the country.

Published in The Express Tribune, June 6th, 2021.

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