Lahore—The President, Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI), Shah Faisal Afridi said that administrative reforms are essentially required to improve the country’s taxation system. While addressing a meeting of the executive committee members of PCJCCI here on Thursday, Afridi suggested bringing reforms in Pakistan’s taxation system on the pattern of Chinese taxation model. He was of the view that administrative reforms are essential in taxation system and attention should be paid to re-designing the tax recovery system. He also gave a briefing on proposed taxation reforms roadmap based on Chinese taxation model. Senior Advisor PCJCCI, Wang Zihai and Xiao, and concerned officials were also present in the meeting.
Afridi told that China had undergone a splendorous community development on the bases of its taxation reforms and Pakistan can make a paradigm shift to have a business friendly taxation system by following Chinese taxation reforms. Chinese made taxation central point to the economic development agenda and community development goals, he said, adding: “China had employed Taxes as the principal means to transfer resources from private to public use.”
In Pakistan, he said, only 0.3pc of the population pays income tax and file a tax return that is one of the lowest ratios in the world. Around 7 million Pakistanis are required to pay income tax, but only less than 0.5 million pay taxes, he said. He regretted that prevailing taxation system is a source of harassment for the business community and a way of corruption.
Referring to the Chinese model of taxation system, President PCJCCI told “China, the socialist state has fulfilled the needs of society from cradle to grave. Child care, education, job placement, housing, subsistence, healthcare, and elder care are largely provided and administered through state-owned enterprises.”