Good time to broaden tax base, says OICCI.

Byline: Khaleeq Kiani

ISLAMABAD -- An influential group of international investors operating in Pakistan has asked the government to make effective use of the National Database and Registration Authority (Nadra) to ensure collection of taxes on all incomes including the agriculture and continue pursuing the documentation of economy despite relaxations and reliefs announced in the wake of Covid-19 outbreak.

In its budget proposals to the government, the Overseas Investment Chamber of Commerce and Industry (OICCI) on Saturday said that time was ripe to bring agriculture income into effective tax net and agriculturists should be required to file income and wealth tax returns with effective use of Nadra records.

The OICCI, on the other hand, advocated that all exemptions and relief should be reviewed and revised except for those in the nature of creating job opportunities in manufacturing and services and facilitating the increase of exports. The exemptions should be given only for attracting foreign direct investment and for underprivileged and poor sections of society.

The business group called for simplification of existing complex system of determining the corporate tax liability by abolishing Alternative Corporate Tax and Minimum Tax Regime and doing away with undue recurring audit, examinations, reviews and recovery proceedings.

It said that simplification of taxpaying process could be addressed by the introduction of a single collection authority using online payments as well as easing the procedures and forms for filing the sales and income tax returns.

Additionally, taxation policies should be for timelines with a 10 year phasing out period to facilitate and protect longer-term investment plans of locals and foreigners. The OICCI also demanded to consolidate all federal taxes, including income tax and levies...