20000404

CBR member rules out cut in tax rates

RECORDER REPORT

LAHORE: Member Direct Taxes, Central Board of Revenue, Mansoor Ahmed on Monday said that the rates of various taxes can not be brought down unless the tax net is broadened and revenue collection is increased.

He asked the traders, industrialists and businessmen to put in their best efforts to improve the national economy instead of demanding concessions and reduction in tax rate.

Addressing the members of the Lahore Chamber of Commerce and Industry (LCCI) on Monday, he said it had become crystal clear that the nation, which was not financially strong could not maintain its sovereignty and independence.

He said the prevailing circumstances require every individual to play his due role for the betterment of the country. He said, "if we do not want to face isolation, we should not waste time and get ready for sacrifices."

He claimed that there were apprehensions of bankruptcy of national economy which were present since long, but in the past due to political reasons, they were kept concealed. He said in such a situation, reduction in tax rate was not possible, as it would decrease revenue.

He said that there was a big resource gap and foreign investment was also not coming to the country due to political reasons. "Now we have to depend on internal resources," he added, referring to taxes.

Talking about amnesty scheme announced by the government for whitening black money by paying 10 percent tax, he said he was not in favour of the scheme because the nation had to rise voluntarily to play its role for improving economic condition of the country.

He said the rate of amnesty scheme is only 10 per cent while in his opinion it should be 30 percent.

He however, stated that amnesty scheme was not aimed at harassing any body. He said he would ensure that the business community would not be harassed.

He termed the demand for abolition of Wealth Tax as unjust.

Commenting on the objection raised by the LCCI Acting President, Sheikh Muhammad Asif over appointment of private chartered accountants, Mansoor Ahmad said if traders had any alternative system, he said he was ready to consider it.

He however, said changes were required in the tax system and the department was ready to consider all suggestions in this regard. He held both traders and officials of the income tax department responsible for difficulties in tax collection and tax payment. He agreed with the proposal of reducing discretionary powers of the IT officers and invited the chamber's suggestions in this regard.

The Acting President LCCI, Sheikh Muhammad Asif, on this occasion said that atmosphere of brotherhood should be promoted and tax officials should go to markets and chamber to listen to the problems of the business community. He also agreed that now was the time that the nation should stand on its feet.

Former President LCCI, Bashir A. Buksh, Iftikhar Ali Malik and executive members Ashraf Bhatti, Aftab Sheikh, Munir ahmad Khan and others on this occasion stressed the need for promoting the atmosphere of trust between the department and the business community.

Replying to various questions, Mansoor Ahmad asserted that we should differentiate between legal and illegal. He said, if we refused to pay illegal gratification to tax officials and pay our taxes honestly, no body would dare to indulge in wrong-doings.