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CE stresses need for widening tax base

RECORDER REPORT

ISLAMABAD: Chief Executive Gen. Pervez Musharraf has underlined the need for widening the tax base to improve country's revenue.

He said that the future taxation policy should be formulated on the bases of broadening the tax base and reducing the number of taxes to benefit common man.

The Chief Executive was addressing officers during his visit to the Central Board of Revenue on Thursday.

Musharraf said that the economic revival was the priority of the government.

He called upon CBR officers to improve their performance and highlight the need to purge corrupt and incompetent persons.

The Chief Executive said that the economic survival of the country depends on honesty, dedication and devotion to duty and the best of strategies and policies cannot succeed if they are not properly implemented.

He stated the government would be forthcoming in providing all possible assistance to the CBR in its duty of tax and revenue collection.

Earlier, the Chief Executive was given a comprehensive briefing covering all aspects, including recommendations for policy formulation by CBR Chairman Riaz Hussain Naqvi.

During the course of the presentation, the CBR Chairman gave a detailed analysis of reasons resulting in the shortfall in revenue collection and identified areas of focus which would substantially increase revenue and tax collection.

He said a consultative process with potential tax-payers had been initiated since January 1.

He also informed that during the interaction with small and medium size traders and businessmen there was a marked desire among them to pay taxes and contributed to improving the economic health of the country as long as the taxation system was made fair and free from coercion and corruption.

The CBR Chairman stated that the approach for the taxation policy would be tax-payer-friendly and punitive towards habitual tax-evaders.

He outlined a comprehensive plan for the elimination of corruption and improvment in the CBR performance. He also asked assistance from the government in a number of major areas.

These included documentation of the economy, effective check on smuggling and equal application of tax laws to all areas, and strong enforcement of tax laws.

Finance Minister Shaukat Aziz, Commerce Minister Abdul Razzaq Dawood, Advisor to the Chief Executive on Media and National Affairs Javed Jabbar and other senior government officials were also present on the occasion.