UBG asks Government to reduce tax rate to boost earnings

Lahore: The United Business Group (UBG) of FPCCI on Monday asked the government to reduce tax rate in the upcoming budget to boost its income and restore the confidence of the business community.

It called upon the government to waive all taxes on establishment of new industries which will help reduce unemployment and boost exports.

Government should also waive taxes on import of plants and machinery to trigger industrialisation in the country, said Zubair Tufail, Secretary General UBG.

In a statement issued here today, he said that taxation system is heavily tilted in favour of trading while is discouraging industry therefore it should be balanced.

Zubair Tufail said that sector enjoying undue tax relaxations should be brought into the tax net and those evading taxes should be dealt according to the law.

A just taxation system will encourage compliance and discourage corruption which can boost government income to five trillion rupees per annum, he noted.

He said that presently a common man is paying 39 percent tax on services and 14 percent income tax while 100 companies are forced to pay almost 90 percent of the whole collection under the head of sales tax.

He said that there are sixty types of withholding taxes on different items confusing everyone.

Zubair Tufail said that 68 percent of all the revenue is collected through taxing fuel, food and electricity which has pushed millions below the poverty line.

Tax system should be improved, level playing field should be ensured and loopholes should be plugged to stop wastage to the tune of billions in the system, he suggested.

He said that preferring direct taxes over indirect collection will make things cheaper and lift million out of poverty.