Consistent growth in tax revenue collection would ultimately lead to sustainable reduction in fiscal deficit, therefore FBR should take additional measures for achieving tax collection target by plugging revenue leakages and improving the refund system, Asad Farid, Acting President Islamabad Chamber of Commerce and Industry (ICCI) made these remarks in a statement.

 

He was responding to the reports that FBR had only collected Rs.1750 billion till June 15, 2012 and still needs Rs.202 billion till June 30, 2012 to meet the target. Asad Farid expressed concern over the missed tax collection target of Rs1,588 billion in the last fiscal year that shown a deficit of Rs.30 billion and said that proactive measures should be introduced to plug the leakages and improve the refund system in tax departments.

 

He emphasized on exploiting the true tax potential of the country and said that fair and equitable tax policies were essential for revamping tax collection system and pulling the economy out of economic crisis. Asad Farid stressed that Government should devise a comprehensive strategy to broaden the tax base and rationalize tax rates so that people should happily contribute towards paying taxes.

 

ICCI Acting President said that business community and foreign investors’ confidence depends upon tax machineries, therefore, tax system should be transparent and the tax collection officers should have no discretionary powers which undermine the fair play. 

 

Asad Farid said that Government has again set a very high tax revenue target of Rs.2380 billion for FY 2012-13. He was of the view that in case of lagging behind the expected tax target, Government would be facing big problems because of further increase in the fiscal deficit which has already widened and pulling country into debt trap.

 

ICCI Acting President anticipated that the country has a potential of increasing tax to GDP ratio through making the system public friendly and equitable. He further said that widening tax net is very much required but it must be in a systematic and realistic way. He emphasized on winning the public confidence by improving governance, eradicating corruption and pursuing equitable tax policies.