The Government had accepted all the demands of traders leaders
during negotiations and had sought their commitment on only three issues viz.
broadening of tax base, implementation of CNIC condition and installation of POS at
certain businesses, but they have not honoured their commitment as yet. He said that
market committees were formed in consultation with traders’ leaders to identify new
taxpayers and stressed that these committees should fulfil their responsibility in
identifying new taxpayers in their respective areas. This was said by Dr. Shams ul Hadi,
Chief Commissioner, Regional Tax Office, Islamabad while addressing business
community at Islamabad Chamber of Commerce & Industry (ICCI). He visited ICCI along
with Ms. Ayesha Farooq Commissioner West Zone and Waheed Khan Commissioner East
Zone RTO Islamabad.

Dr. Shams ul Hadi said that business community should cooperate in documentation of
economy. He said that documented economy would reduce burden on existing
taxpayers and help in accelerating economic growth. He said that sales tax collection
was a trust of the government with the business community and they should fulfil this
trust by depositing it honestly with the government. He said that government had set an
initial tax target of Rs.5.5 trillion and emphasized that business community should
cooperate in getting closer to this ambitious target. He said that ICCI should send
written issues of taxpayers to RTO Islamabad and assured that he would cooperate in
resolving them.

Ms. Ayesha Farooq Commissioner West Zone and Waheed Khan Commissioner East
Zone RTO, Islamabad briefed the business community about the commitments of the
government with IMF & FATF and urged that business community should fully support
the government in its drive for expansion of tax base.
Speaking at the occasion, Muhammad Ahmed Waheed, President, Islamabad Chamber
of Commerce & Industry said that the prevailing complicated and cumbersome tax
system was a major hurdle in promoting tax culture and stressed that government
should develop a simplified and transparent tax system that should facilitate in business
promotion instead of creating hurdles. He said that business community wanted to help
the government in improving tax revenue, but issuance of tax notices shattered their
confidence. He said tax machinery should avoid steps that created harassment in
business community and try to collect tax with a friendly approach.
Tahir Abbasi Senior Vice President ICCI said that government has increased tax on rental
income up to 35 percent that should be revised downward. He said that tax department
should ensure the self-respect of business community and give incentives to highest
taxpayers in order to encourage tax culture.

Mian Akram Farid, Chairman Founder Group said that increasing turnover tax on steel
industry from 1.2 percent to 1.5 percent has created problems for this industry and

demanded that government should bring it down. He said that tax exemption cases of
taxpayers were unnecessarily delayed and urged that these cases should be addressed
in time.
Zafar Bakhtawari, Mian Shaukat Masud, Naeem Siddiqui, M. Aslam Khokhar, Khalid
Chaudhry, Mian Ramzan, Ch. Tahir and others also highlighted various tax related issues
and stressed that RTO Islamabad should take measures to address them.