Economics & Business

FBR ill equipped for RGST adventure

Islamabad: The Pakistan Economy Watch (PEW) on Sunday said that Federal Board of Revenue (FBR) is not fully prepared to tackle controversial RGST. An agency that has failed to realise proper implementation and collection of direct taxes like income tax, sales tax and property tax etc since decades cannot be entrusted to collect RGST, it said.

Government has made serious efforts to convince provinces and other stakeholders on RGST but it is yet to initiate dialogue on taxing agricultural income, said Dr. Murtaza Mughal, President PEW.

The situation suggests that Government is finding refuge in which is hypocrisy and overloading those who were already paying taxes which is discrimination against taxpayers and undue favour to the landed elite.“Any value added taxes can be successfully implemented after complete documentation of economy and reformation of taxation system”, he said.

Dr. Murtaza Mughal said that GST was imposed in 1990 that was also a value added tax but government is still unable to implement it as intended and yet they are heading towards another failure.

Government has fixed a ceiling that any salaried person who earns more than Rs300,000 would pay income tax. This decision should be implemented all over the country irrespective of jobs and status of the citizens, he demanded.

Government did not bothered for any awareness campaign, tried to take trade and industry into confidence or consult independent economists before the decision which has raised suspicions. FBR management is not skilled or efficient enough to collect such levies; it will only boost their illegitimate income, he said.-Pak Economy Watch

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Haroon Akram Gill

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