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PEW lauds FBR reforms

PEW lauds FBR reforms

ISLAMABAD: Pakistan Economy Watch (PEW) Chairman Brig (R) Muhammad Aslam Khan supporting the reforms in Federal Board of Revenue (FBR) has termed it a positive step which will infuse confidence in the business community.

In a statement, Brig (R) M Aslam Khan said the decision to limit the role of FBR in tax collection and entrusting policymaking to Tax Policy Board is a major step in the right direction which will lessen the complaints of the taxpayers.

He said that limiting the role of tax administration was demanded by the business community which will improve the situation and reduces dependence on foreign loans.

The decision is a larger shift in the governance of the tax administration which is opposite to what the former government did that augmented the sufferings of masses, he added.

Khan said the FBR is pushing the policy of regressive taxation as it continues to collect 82 percent taxes from masses while the ratio of direct taxation is only 18 percent which is fanning poverty. The Chairman PEW hoped that the Tax Policy Board will improve the taxation system to ensure equal distribution of wealth which will provide relief to masses and help expand the tax net.

Meanwhile, President PEW Dr Murtaza Mughal said the government will form a committee which will formulate a larger tax reform framework with the help of independent tax.

He said Prime Minister Imran Khan in his first speech promised to start the reform process with the FBR.

Dr Mughal stressed that the PM should also try to reduce corruption in the department and ensure that tax should be used to provide services to the taxpayer, which will automatically improve the relationship between the state and the taxpayers.