January 4, 2016
President PBIF and All Karachi Industrial Alliance, Former Provincial Minister of Information Technology and First Vice Chairman of the Businessmen Panel of FPCCI Mian Zahid Hussain welcomed the Voluntarily Tax Compliance Scheme (VTCS) and assured that Business Community will never leave country alone in the time of crisis and told that Business Community have responded positively to the appeal of Prime Minister Mian Nawaz Sharif to help the country’s development needs.
Mian Zahid Hussain told that VTCS will not only help to bridge fiscal deficit but it will also help to broaden the tax net. Former Provincial Minister hoped that around US$ 70 billion, part of current black economy of Pakistan estimated 30% of GDP, could be converted into Formal Economy through this unique amnesty scheme.
Mian Zahid Hussain told that elimination of Black Economy is critical for broaden the tax base, reducing information asymmetries and facilitate trade and investment while reduce cash economy and corruption. He told that loss of revenue incurred by exchequer due to this undocumented economy is filled by FBR through imposing excessive tax on higher tax rate from Formal Sector, which is highly unjust and real impediment toward broadening tax base.
The seasoned Business leader told that Informal Sector use to grow because of partialism of Tax laws, the Attitude of Tax collectors and ease of tax evasion through collusion. Business friendly steps by current regime must be appreciated and Govt. should go toward eradication of the informal economy by simplifying complex laws, reducing hesitation of Businessmen toward audit.
Mian Zahid Hussain told that Govt. have showed their gesture toward promotion of Business within the Economy and defined a roadmap and better way to collect Tax to FBR, which use to harass Business Community for completing their tax collection target. Now, it is time for tax collecting machinery to collaborate with Business Community for attaining Win-Win situation and improve tax collection.
