RCCI for reduction in tax rate to help expand tax net

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2014-02-13T00:45:51+05:00 APP

RAWALPINDI : Rawalpindi Chamber of Commerce and Industry (RCCI) on Wednesday highlighted the need for reduction in the tax rate with an ultimate aim to expand the existing tax net for more revenue generation. “For bringing more people in the tax net there is a dire need to decrease the rate of tax which ultimately would help swell the overall tax collection”, said President RCCI Dr Shimail Dawood while addressing a function held here.  The RCCI chief referring to the decisions taken at a recently held joint conference of chambers of the country at Karachi said that at present tax to GDP ratio is 9 % and if the Petroleum Development Levy is included then the ratio jumps up to 13pc.
Whereas, he said, the tax to GDP ratio in India is 17 %, 15 % in Sri Lanka, and 12pc in Indonesia thus the ratio in Pakistan is comparatively at considerable level thereby he annulled the impression that there are hardly tax payers in Pakistan.
   Despite rampant incidents of terror the tax to GDP ratio in Pakistan is in the right direction and instead of unnecessarily targeting the trader community the concerned authorities should focus on the suggestions to give boost to the tax collection, given by the chambers through a joint declaration, he said.
RCCI President said that all the chambers had rejected the existing system of indirect taxation and advocated for the system based on direct taxation that would in turn help increase the revenue collection besides bringing more people into tax net. This step, he added would not only help increasing revenue generation but also overcome the scourge of smuggling which will eventually help save valuable foreign exchange.
   He was critical about a segment of trader community who has been showered blessings by issuing SROs in their favor and said no such move is acceptable to them. “The whole of trader community will be with the Government if it continues to work indiscriminately”, he added.The function was attended by a large number of traders including office bearers of the RCCI.

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