FBR mulls merging various taxes into one for trade, industries sector

• FBR looking to merge various taxes into one
• Tax official says recommendations will be sent to the Parliament
• FPCCI concerned over govt failure to consult main stakeholder

The Federal Board of Revenue (FBR) is looking for ways to merge various taxes into one in a bid to simplify taxation system for trade and industries sector, The News reported on Tuesday.

Senior tax official, member Inland Revenue Department of the FBR, Ashfaq Ahmed said the tax rates and collection procedure is decided by the parliament and the board has no authority to change it but it is mulling recommending modifying the procedures.

“We have achieved a record of tax collection by increasing the number of taxpayers this year,” Ahmed said during a meeting with the office-bearers of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

The board adopted a policy to extend the date of filing returns for a period of 90 days from September to December last year instead of multiple short extensions.

Ahmed said the number of income tax return filers may touch three million by the end of this year, adding that the tax authority has constituted an anomalies committee to settle tax issues. “I am personally working on it to improve the procedures”.

Meanwhile, the FPCCI expressed concerns over the government's failure to take them on board despite it being the main stakeholder in revenue generation.

The body has proposed an FBR facilitation desk at its head office in Karachi to ensure coordination with the business community.

“The complexity of tax on tax, additional tax, and advance tax is creating confusion and a difficult and lengthy process,” Nasser Hyatt Maggo, president of FPCCI said. “All the basic exemptions are available for large enterprises. Small and medium enterprises should be facilitated to bring them into the tax net. Our members have many questions and all relevant problems should be revisited in consultation with FPCCI.”