20000418

KCCI budget proposals

Tax laws need

re-drafting

NAYYAR ZUBERI

KARACHI: The Karachi Chamber of Commerce and Industry has suggested that all tax laws and procedures should be re-drafted.

In its budget proposals for the fiscal year 2000-2001, the chamber said the tax laws and procedure should be just and fair that make the tax payer feel honoured, proud and inclined fearlessly and voluntarily to make his full contribution, which otherwise, he obviously abhors and is distracted from doing when he is looked upon as a suspect straightaway.

Ñ The chamber suggested that the tax laws should be simple, short, unambiguous, easily comprehensible and be free from intricacies which may baffle the minds, not only of the tax-payers, but also even of tax-experts.

Ñ The laws be so simplified, classified and compiled that any tax payer is able to find most of the basic provisions relating to his class, at one place, so that he may not have to go through the whole legislation to ascertain its total implication.

Ñ The draft laws should be circulated through the FPCCI, chambers, tax bars and all specific trade associations and groups, etc., inviting their comments and suggestions, thereon , before it is finally enacted.

The chamber demanded wealth tax should be abolished totally. The provision of withholding taxes such as on electricity, gas, telephone bills be withdrawn. TV licence fee should be abolished. This will save harassment, corruption and waste of time.

It is pointed out that the existing Income Tax Ordinance vests innumerable discretionary and coercive powers in the assessing and collecting authorities not only for assessment but also for impounding record and entry into premises, seizure, investigation and imposing penalties and punishments.

Ñ The determination of profit or loss , disallowing the permissible deductions, making add-backs in declared income, re-opening of cases etc., are not done under a well-defined and justified parameters, but through the discretion of assessing official concerned.

The chamber noted that the present laws despite 600 amendments were full of ambiguities, and suggested that the fresh laws be enacted in consultation with the FPCCI, KCCI and other associations, etc., meeting the criteria of simplicity and un-ambiguity.

The chamber suggested establishment of a high powered institution of the Federal Tax Ombudsman as envisaged in the Finance Act 1999 and the Economic Revival Plan of the present government, to seek constructive remedy in respect of tax payers' legitimate complaints against tax functionaries.