On September 20, 2021, Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Monday lauded the move of the government to slap an additional tax on non-filer entities, which will broaden the tax base and generate much-needed funds necessary for national development.
He said that the decision is not cruelty or an attack on the masses but a step in the right direction as tax compliance in Pakistan is one of the lowest in the world which leave the government with no other option but to borrow money to run affairs.
Shahid Rasheed Butt rejected hue and cry by opposition terming it an effort aimed at point-scoring while the disapproval by various trade bodies is based on a desire to avoid taxes and lack of understanding of the issue.
He said that the federal government has imposed additional sales tax ranging from five to seventeen percent on the supply of electricity and gas to non-filer industrial and commercial entities that is one of the good decisions of the government for National Development.
The government should not bow to the pressure of traders over installing POS at retail business outlets to boost collection, he demanded.
Mr. Butt noted that a reduction of three percent sales tax will bring down the price of ghee and cooking oil by Rs10 per kg which will reduce the annual burden on the masses by Rs45 billion, therefore the government should also consider reducing taxes on other essential items.
He said that the people were already suffering due to inflated prices of daily use commodities but the hike in power tariff would not hurt them as it is being imposed on businesspersons who avoid filing tax returns.
Poverty has been increasing for three years that should be taken seriously because it is foretelling us of the economic crisis, he added.
Pakistan is facing an economic crisis with no respite in sight, he said, adding that the PTI should fulfil its commitments with the nation to overcome inflation, provide jobs, ensure affordable health and education, reform services, and bring stability in prices of essential items.
