LCCI President Irfan Iqbal Sheikh said that PM and CoAS pledge to remove hurdles and a problem being faced by the businessmen is a good sign. The economic growth can be speed up provided reservations of business community regarding taxation system are removed, refunds are paid expeditiously, discretionary powers that have opened floodgates of corruption are clipped, agriculture stagnation is reversed and utility prices are reduced, he said.
He said the role of Federal Board of Revenue is considered as a key facilitator to private sector. But our experience shows that dealing with FBR, is not always easy. Tax system is complicated and burdensome which creates room for complicities between tax payers and the tax collectors, he said. A number of taxes and frequency of paying taxes must be reduced. Moreover, taxes may be paid quarterly instead of every month. For that matter, all Para tariffs must be merged in the main tariffs, he added.
"Similarly, there should be electronic communication between taxpayers and tax departments. These proposals can make noticeable difference and win the confidence of taxpayers," he maintained. LCCI president suggested that the government should take steps to control smuggling at the borders and Frontier core deployed there should be equipped with state of the art technology and made them more vigilant and to advise them to play their role in controlling the smuggling by exercising their authority under Customs Act.
He also suggested that the duties on such goods which are prone to smuggling should be reduced as it has been practiced successfully in many other countries. He called for reduction in duties and taxes on raw materials. He was of the view that all export-oriented sectors, including Halal food sector, should be given zero-rated facility as the country has a little share in the international Halal food trade of about 3 trillion dollars.
He said that energy mix of the country is very expensive due to lack of hydel power generation. This results in tariff hikes and makes the industry uncompetitive in the international market, he said. Despite an agrarian country, Pakistan is importing fruits, vegetables and other agri products on large scale that is a matter of concern, he added.