KARACHI: FBR chairman Shabbar Zaidi has attributed accumulation of untaxed wealth to bungled taxation policies and administrative flaws, saying the Existing system poses threats to economy, it was learnt on Friday.“As a result (of) serious flaws in the policy and administrative aspects, there has been substantial accumulation of untaxed wealth,” Zaidi said in a letter to the Prime Minister Imran Khan.The FBR chief was critical of the tax collection’s reliance on indirect taxes. “Pakistan’s tax collection system generates less than 10 percent of GDP. Even that collection is made in form of indirect taxes, not being real income,” he said in the letter available with The News. “This system is not workable and it represents a serious economic threat for the country.”The country has been struggling to broaden the tax base with what the FBR chairman said only one percent of the people carrying the burden of the entire state. Despite all efforts and punitive taxation, less than two million people – out of 220 million population – have so far been encouraged to file returns. The FBR’s collection amounted to Rs2.983 trillion in July-April period of the current fiscal year of 2018/19 against the desired target of Rs3.337 trillion. The provisional shortfall has so far ballooned to Rs355 billion so far. The country, which is about to enter an International Monetary Fund’s $6 billion loan program, is under an immense pressure to mobilise tax resources to introduce fiscal discipline.
06-02-2019, 05:27 AM
FBR chairman writes to PM: Existing tax system threat to economy, syas Zaidi
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