The Centre was set up to facilitate the young and new entrepreneurs. Chairman Punjab Revenue Authority (PRA) Dr Raheel Ahmed Siddiqui and LCCI office bearers were also present on the occasion. She said that focus is on tax expansion instead of burdening the existing taxpayers.
While talking about the ongoing economic scenario, she said that government is making sincere efforts to overcome economic challenges. She said that promotion of local industries and confidence building of the investors is an integral part of government policy.
Dr Ayesha Ghaus Pasha has said the Punjab Revenue Authority (PRA) is the first agency which is collecting tax on provincial level. Since the establishment of the PRA in 2012, the services and businesses to be included in tax net has been increasing considerably. She said that work on tax net expansion is well under way. She said that tax collection day would be observed on April 10. The initiative was taken last years to inform the taxpayers that their tax is being spent on development projects and to develop tax culture. She said that expenditure development has increased by 38 percent. She said that work on a number of power projects is in progress. Baloki RLNG plant of 800 MW would soon be operational.
On the issue of double taxation, she said that the issue has been taken with the Federal Finance Minister and Federal Board of Revenue and positive results are expected in this regard. "Our aim is to enhance growth rate of Pakistan and Punjab, to enhance exports, to bring investment and to achieve this target role of private sector is significant" she added.
Chairman Punjab Revenue Authority (PRA) Dr Raheel Ahmed Siddiqui said that Sindh Revenue Authority has been asked to settle the issue of Infrastructure Development Cess has also been asked to bring down its rate in the first phase. A formula in this regard has also been evolved that would be discussed in next meeting. He said that five meetings have been held with the representatives of Sindh, KPK and Sindh Revenue authorities and they have been asked to resolve the issue of source and destination of the goods. He hoped that by the end of current financial year these issues would be resolved.
Speaking on the occasion, the LCCI President Abdul Basit said that the Lahore Chamber has been calling for a long time that there was need to expand the tax net instead of burdening the existing taxpayers. There must be inter provincial tax harmonisation as federal and provincial governments have imposed same kinds of taxes. There are different rates of sales tax and withholding tax in different sectors which confuses the business community.
He said the Punjab government has levied 0.90 percent Punjab Infrastructure Development Cess on all those shipments that would be cleared from the Punjab dry ports. He said that this Cess should be withdrawn as businessmen already pay 1.05 percent tax at the level of clearance from Sindh. He also called for withdrawal of luxury tax imposed on large pieces of land saying that taxpayers purchase these lands after paying tax on their income therefore there is no logic to impose luxury tax. There are a number of taxes where annual collection is less than one billion. These taxes should be merged to other taxes so that number of taxes could be reduced, he said.
Abdul Basit said that there should be only one tax collection body so that to reduce the liaison of business community with various departments. He suggested assigning this task to the Punjab Revenue Authority. Punjab Revenue Authority has signed an agreement with Australian High Commission and McKinsey & Company for running a diagnostic on the Punjab Revenue Authority (PRA) and suggesting a reforms process for improving the tax administration and tax revenues. The business community must be taken on board that how the rise in tax collection could be made possible, he said.
The LCCI President urged the Provincial Finance Minister to take up the issue of raids on business premises and misuse of discretionary powers by the tax officials with the concerned authorities as these issues are badly fettering the business activities. He welcomed the initiative of online tax payment and computerisation of land revenue record and said that promotion of information technology is a key to success.
Copyright Business Recorder, 2017