March 14, 2016
President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, First Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister Mian Zahid Hussain on Monday said tax system is not compatible with ground realities therefore it is not being accepted by the small traders.
A new tax revenue authority should be established keeping in view the issues of small traders according to their aspirations to widen the tax net and bring this segment into the mainstream, he said.
In a statement issued here today, Mian Zahid Hussain said that the current tax amnesty scheme could not attract trading community as less than three thousand people filed returns despite six extensions in the deadline.
He said that there is a trust deficit and apprehension of tax authorities among traders, FBR’s system is too good to be perfect and policies are not well-matched.
A new tax authority must be established with simple laws and procedures after consultation with small traders and SMEDA which will pave way for the welfare of this important segment which is continue to shy away from filing returns due to want of accountants and lawyers.
Mian Zahid Hussain said that many countries have ensured development by focusing on small businesses, engine of economic growth.
Small and medium size business have 40 percent share in GDP, 30 percent share in exports and providing jobs to 80 percent people besides agriculture, he added.
A little attention can help 3.2 million SMEs to boost GDP which is already facing challenges like collapse of cotton crop and recent untimely rains.
He called for training, security, market information, cheap loans and information about latest trends to help SME sector which will reduce unemployment, boost output and exports and develop overall economy.