20000208

Balochistan

traders want

change in

taxation system

RECORDER REPORT

QUETTA: The Balochistan Anjuman-e-Tajiran has renewed its opposition to the present system of sales tax, wealth tax and income tax and recommended for radical change in the taxation structure, tailoring it to the rapidly changing economic scenario.

A spokesman of the anjuman told a group of journalists here on Monday that the existing taxation system was neither beneficial to the national economy, nor to the business community, traders, importers and exporters.

About sales tax, the spokesman said, presently there is a parallel economy, informal or unregistered economy in the country, estimated at about 70 percent of the national economy. The country has agro-based economy with negligible tax on agricultural income. This unregistered or informal economy must be brought into the tax net during the financial year 2000-2001. Once this is done, than, there would be no need for any more tax including GST on the retailers or registered tax payers. Sales tax should be collected at initial state of production and import.

The spokesman said, the anjuman is of the firm view that wealth tax is unIslamic. As much, it must be abolished in the next budget. Tax payers including traders and farmers are already paying Zakat and Ushr.

He said that Development tax already suggested by the traders should be introduced with some modification in rates to 0.5 percent to enlarge tax base during the year 2000-2001.

Asked about anjuman's recommendations for income tax, the spokesman said the present government should come out with a policy in the next national budget. This policy should be drawn on long term basis for five years to capture confidence of the tax payers particularly the business community, which constitutes backbone of national economy.

He said representatives from the federation, all chambers, registered trade organisations, importers and exporters bodies as well as registered bodies of investors and industrialists should be closely associated with budget making for the financial year 2000-2001 for easily understandable taxation structure.