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Business community urges govt to simplify tax regime

Business community urges govt to simplify tax regime

LAHORE: Businessmen and traders have said that tax regime in Pakistan is complicated with multiple tax rates as taxpayers are paying almost 10 different taxes in addition to many indirect taxes.
They said that we want to pay tax, but high taxes and difficult tax system is the main hurdle in better tax compliance.
They said government should simplify tax system and introduce single digit sales tax rate in order to attract more taxpayers into the tax net.
Meanwhile, Chas Roy Chaudhry, ACCA’s Head of Global Taxation, Arif Masud Mirza Regional Head of Policy MENASA ACCA Hammad Siddiqui Acting Country Director Centre for International Private Enterprise (CIPE), Muhammad Yasir Technical Advisor Tax Compliance FBR and others also addressed the meeting and urged the government to simplify tax system.
The meeting highlighted that after the passage of 18th amendment to the constitution, three provinces except for Baluchistan, have established their own tax authorities for collection of sales tax on services, however, the issues like overlapping between federal and provincial tax authorities and double taxation is creating problems for taxpayers.
They said without cross provincial consensus and inter-provincial harmonization on tax collection of sales tax on services, there would be issues of double taxation and excessive administration burden both on the business community and tax authorities.