ISLAMABAD - Taxpayers Alliance Pakistan has released a charter of demands for the upcoming federal budget, which define broad tax policy and principles that the Alliance considers integral to tax reforms, which can lead to economic growth. 
Taxpayers Alliance, an initiative supported by an independent think tank PRIME, has asked that the government must commit to fiscal discipline, minimising its wasteful expenditures while maintaining complete transparency with a view to demonstrate to the public that their taxes are used in the most judicious manner.
The Alliance has called for a shift from the regressive taxation structure to a progressive one by increasing reliance on direct taxes though imposition of a low-rate, broad-based, predictable and wherever possible, flat rate taxes. They have called for, and supported the move to end discrimination and exemptions in taxes and have urged to tax all sources of income uniformly. Highlighting the plight of withholding taxes, the Alliance has asked for a gradual elimination of all presumptive taxes with certain exceptions.  
The Taxpayers Alliance has also called for considering negative taxation while eventually replacing direct cash transfers, subsidies, and cross-subsidies, which suffer from poor selection thus wastage of resources. 
The 14 points charter of demand is an evolving document, which the Alliance has now released for open feedback and consideration by the budget policy makers about two months before the budget is announced. 
These points included government must commit to fiscal discipline, minimising its wasteful expenditures while maintaining complete transparency with a view to demonstrate to the public that their taxes are used in the most judicious manner. Taxes should be fewer, low-rate, broad-based, predictable and wherever possible, flat. Ideally, income tax and a mild wealth tax on certain types of wealth should become the main tool of tax revenue. There should be no discrimination and exemptions in taxation. For example, all sources of income must be taxed equally. Those in need of specific incentives may be provided relief through other government entities such as BISP, ministry of Finance etc as direct transfers. General Sales Tax should be reduced significantly and harmonised across the federal and provincial jurisdictions.
Every earning individual or firm or corporate entity must file an online income tax return, which is simplified to the extent that those people who cannot read/write English, should be able to file their tax returns on their own and those who need to declare additional information may be allowed over and above that. We should encourage, and not discourage, corporatisation through taxation. Compliance cost for registrations, tax payments and returns filing should be significantly reduced.
Introduce a penalty (in the form of return of court fee, lawyer fee and interest payment on amount blocked) on FBR in case of degree in favour of plaintiff against FBR. No General Sales Tax should be collected in advance at import or manufacturing stage. Tax exemptions available on pensions and savings instruments should be withdrawn. Taxpayers Alliance Pakistan is a voluntary network and any Pakistani citizen, individual or corporate body, which is a taxpayer and agree with the mission, can join the network.