PTBA proposes tax reforms to broaden tax base

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KARACHI: The Pakistan Tax Bar Association (PTBA) has recommended to extend the tax base by imposing tax on all kinds of income, which aims to increase the number of taxpayers to 50 million. PTBA also supports more uniformity in salaried taxes.

In its budget proposals for the next financial year to the Federal Board of Revenue (FBR), PTBA advised that a tax imposed at a fixed rate of 10 % on a pension of over Rs 100,000 per month. Should It to shut down pension payments in foreign currency, implement the Point of Cell (POS) system at the service provider level, and ensure online issuance of immunity certificates within 15 days according to law. Also suggested. The PTBA demanded the withdrawal of immovable properties, and suggested that all sales and purchase are subject to capital gains tax.

The tax body also recommended the income tax ordinance on foreign assets, the elimination of section 7E of 2001 and the elimination of Capital Value Tax (CVT) on foreign assets. It suggested that the tax notice should be issued only under Section 122 (5) of the ordinance only if the contradictions in the data between the tax filers are identified. The PTBA suggested that notes under Section 122 (5) (A) should be issued only after section 122 (1) and (5) amending the diagnosis, and Section 170 of the Income Tax Ordinance (4 ) Under the automatic refund should be issued, 2001.

In the agricultural income sector, the PTBA suggested that the federal government should collect tax on such income. The body also demanded the return of revenue to the FBR’s Irsus portal according to the specific time limits in the ordinance’s rule 34A.

For indirect taxes, the PTBA advocated for the implementation of the POS system at all levels of trade activity. The Association also recommended that the sales tax rate be reduced to the same digits (6.0 %) and that a low rate of sales tax on online banking or payments made by credit or debit card should be implemented –

To tackle the challenges of establishing an effective tax system, the PTBA highlighted the failure to bring wholesalers and servants into the tax net, the complexity of documents, and the increase in tax evasion and avoidance. It also noted the flaws in both the legal and administrative systems, the lack of information related to tax responsibilities, and the weak procedures of the enforcement, which are obstructing appropriate tax collection.

The PTBA also pointed to a limited digital integration within a cash -based economy and businesses and tax collection systems as there are important issues played in this issue. It emphasized the need for maximum tax administration and better delegation and accountability within the FBR. It has warned about the ongoing interest dispute between policy makers and tax collectors.

To tackle these challenges, PTBA proposed to take advantage of artificial intelligence (AI) and digital solutions in both FBR and business to increase tax collection transparency and performance. The body also called for the use of digital invoices to track better FBR governance, sales and purchase transactions, and the implementation of technical promotion through NADRA. It further recommended cooperation with leading international services providers to digitalize tax collection and establish new monitoring procedures to stabilize the FBR governance structure.

The PTBA also suggested that the tax system be more friendly to taxpayers, which suggests that taxation-to-collecting to expenditures-ready to benefit and benefit the general public. Is He recommended investment of tax revenue in key sectors such as health, education, infrastructure, and transportation, and proposed to run public hospitals and schools under public private partnership, which includes tax filers less or free. Take advantage of services. The PTBA demanded clear communication about the tax amount spent on each project or activity.

Under the Right Information (RTI) law, the PTBA recommended the tax declaration of government officials, judges, ministers and other office holders. It also proposed to amend the salaries of FBR officials so that the provincial revenue officials could be compatible with, and they could be offered the benefits of better education and health care. The PTBA further suggested that the FBR quarter performance reports be published on its website, which includes the number of non -filers and data for becoming a scoreboard for tax filers.