Chairman FBR Mr. Mumtaz Haider Rizvi visited the Institute of Chartered Accountants of Pakistan (ICAP), Karachi today on a special invitation to meet ICAP’s President, officials and the Institute’s Committee on Taxation. President ICAP, Mr. Rashid Rahman Mir, welcomed the Chairman.
The Chairman Committee on Taxation, Mr. Saqib Masood, gave a presentation on the tax proposals submitted by the Institute to the FBR and the Government for consideration for the Federal Budget 2012-13. He said that focus should be to broaden the tax base, instead of increasing the tax rate. Amnesty schemes and fixed tax regime should be abolished, as these have proved to be counter-productive. Relevant laws should be amended to enable FBR to relate CNIC numbers when people buy and sell property and vehicle, make air travel, pay utility bills, schools fee and club subscriptions. These CNIC number may then be matched with NTN numbers by the department. Appropriate check and balances should be introduced for foreign remittances, so that these may not be used to whiten money. Mr. Saqib Masood emphasized the need to reduce the corporate tax rate to inculcate corporatization culture in the country. He also suggested that export of goods and services should be equated.
The Chairman FBR apprised the participants of the various measures taken by the tax department to reduce taxpayers’ difficulties and to ease tax compliances. He lauded the role of ICAP in enhancing taxpayers’ awareness and thanked the President ICAP and his team for the tax proposals furnished by the Institute. He further appreciated the recommendations made by the Institute and assured that due consideration will be given to the proposals submitted by ICAP.
During the discussion ICAP supported FBR over Broadening of Tax Base, documentation of economy through SRO 191, reduction of duties and taxes on manufacturing and industrial sectors and addressing anomalies in direct and indirect tax laws.
The Chairman FBR was accompanied by FBR’s Member (IR) Mr. Shahid Hussain Asad and Chief Commissioners of LTU and RTOs Karachi.