Lahore
The Friends of Economic and Business Reforms (FEBR) President Kashif Anwar has urged the government to formulate a special scheme for retailers to bring them into tax net so that tax base should be enhanced
In a letter written to FBR Chairman Syed Shabbar Zaidi he said if law makers are serious in broadening the tax base, they have to restructure the Sales Tax and Income Tax, making taxpayers-friendly policies, redrafting those sections which have empowered limitless authorities to them, undermining the rights of taxpayers and refrain non-filers from becoming part of formal economy. In the letter, he suggested that for the enhancement of tax base, a special scheme for retailers should be formulated. “Those retailers who pay tax 15% more from the previous year by enhancing the turnover in the same proportion, there should be no audit for them.
In this way the turnovers will increase by 100% after five years and substantial amount of tax will be collected.”
He proposed that it should be mandatory for all retailers to make verifiable purchases and feed them in their annual income tax return. Otherwise, their returns should not be acceptable.
“In order to enhance documentation, slabs of turnover should be made. As the Turnover increases, the rate of tax must reduce proportionately.
Those retailers who adopt this scheme should be exempt from minimum tax at Rs.10Mn and becoming withholding agent at Rs.50 million.”
Kashif Anwar called for legislations through parliament to safeguard the rights of existing taxpayers.—INP
