MCCI urges government for fair taxation policy

MULTAN  (March 14, 2011) : Multan Chamber of Commerce and Industry (MCCI) has urged the government for fair taxation policy in order to raise revenue and broaden the tax base. "Many people avoid filing tax returns because of their fear of harassment by tax department which are the main reasons for insufficient tax collection.

Taxpayers yet felt insecure because of complications in the current taxation policy and lack of trust in the present tax system," President MCCI Shahid Naseem Khokhar said in a press statement, here the other day.

He said that tax collectors should collect taxes and there should be no harassment. He anticipated that the country has a potential of increasing tax to GDP ratio by 3.5 percent for next five years through making the system, public friendly and equitable. Widening tax net will allow reduction in tax rates, without reducing revenue, he added.

Khokhar further said that the encouragement of tax culture could only take place through removal of corruption from the tax departments, which will encourage and mobilise new taxpayers who are hesitant to contribute and continue to remain outside the tax net. The MCCI president said that once people see the tangible benefits of the taxes paid, there would be a better response to tax compliance. Hence it is imperative for the government to revamp the perceptions of public by proving that their money is spent on them. Taxation has not been given proper attention in Pakistan, Shahid Khokhar said.

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