Hyderabad SITE Association of Trade and Industry Acting Chairman Aamir Shahab has said that the division of filers and non-filers in the country has created unnecessary complications for the business community and common citizens. At the same time, despite this system, the desired increase in the tax net could not be achieved.

He said that the government and the FBR should introduce a comprehensive, simple tax system by abolishing the terms “filer” and “non-filer”. The tax exemption of up to Rs 4 lakh for business people and Rs 6 lakh for the salaried class should be reviewed, and all income earners should be included in the return-filing system at a very modest rate, such as a flat tax of 0.10 percent or less, for low-income groups.

He suggested that filing an annual income tax return should be made mandatory for every citizen aged 18 years or above. Those whose income is below the taxable limit should file zero tax returns so that every citizen can become part of the national tax record. He further said that bank accounts, properties, vehicles, and business registrations should be linked to return filing, while the FBR return form should be made extremely simple and concise. This move will automatically include millions of people in the tax system, make the economy more documented, widen the tax net, and give the government a significant increase in revenue without raising tax rates.

The acting chairman of Hyderabad SITE Association demanded that the federal government, instead of placing more burden on taxpayers, introduce reforms that broaden the tax base and promote voluntary compliance to ensure sustainable economic growth and increased revenue.