He said in his view tariff measures could be more effective and fruitful than the administrative reforms, however, both the tools were being used to achieve the goal. According to him, Pakistan's domestic industry faced with major threats of smuggling, under-invoicing and mis-declaration.
Answering a question, he said tax rate for banks and private companies would also be rationalised and cut down to a uniform level of 35 percent by the year 2007-08, while Regional Tax Units (RTUs) would be established in 12 major cities within a year. About the revenue collection, he expressed hope that revenue targets for the year 2004-05 would be achieved.
Earlier, addressing the function, Yousuf said efforts would continue to be made to broaden the tax base, while tax rates would also be further rationalised to facilitate the taxpayers.
"We are also paying much attention to taxpayers' education and minimising the contact between taxpayers and the collector. He pointed out there was wide gap between the national tax number (NTN) holders and return filers, adding against 2.2 million NTN holders, the number of taxpayers came to only 1.1 million.
He, however, pointed out CBR was updating the data of income tax payers and general sales tax (GST) registered persons/companies.
Terming the experiment of Large Taxpayers Units (LTUs) and Medium Taxpayers Units (MTUs) a 'success story', he said the tax growth rate at LTU Karachi had been higher during the years 2002-03 and 2003-04 as compared to national tax growth rate.
"It is our utmost endeavour to create an investment friendly atmosphere so as to encourage and promote economic activity in the country", he said. He, however, viewed that to achieve that goal, there was a need for further rationalisation of taxes as well as end-to-end automation in the tax department.
Former finance minister Sartaj Aziz, on the occasion, termed socio-economic disparities as prime factor for poverty in the country, which was evident from the fact that 90 percent land holding was in possession of only 7 percent population. The situation was also more or less identical in the industrial sector, he added.
He stressed the need for putting in efforts for improving the socio-economic well being of the people so that they could also enjoy the fruits of improved macro-economic conditions in the country. He, however, pointed out that due to improvement in the macro-economic conditions over the last five years, a lot of fiscal space had been created for the uplift projects.
As far as investment was concerned, he said it was pouring in. He also expressed hope that stability in Afghanistan and improvement in relations with India would have a positive impact on the country's economy too.
Others who spoke on the occasion were Lieutenant General Ghulam Safdar Butt (Retd), Lieutenant General Wajahat Hussain (Retd) and industrialist Shahzada Alam Monnoo.