A delegation of Institute of Chartered Accountants of Pakistan (ICAP) led by its President Riaz A. Rehman Chamdia called on Prime Minister Shahid Khaqan Abbasi and presented him budget proposal document for 2018-19 drafted by the Institute. The meeting took place at a dinner hosted by Miftah Ismail, the Finance Minister here in Karachi. ICAP Vice President Farrukh Rehman and Chairman Committee on Fiscal Laws Ashfaq Yousuf Tola also accompanied with the President ICAP. First time in the history of ICAP, this event took place in the presence of eminent businessmen of Karachi.
On this occasion, President ICAP Riaz A. Rehman Chamdia presented institute proposals and recommendations to the Prime Minister urging the government to increase tax base by taking bold decisions in the current budget. This will improve the economy and increase tax to GDP ratio.
President Riaz A. Rehman Chamdia said that due to its role as the national leader of the accountancy profession, ICAP has always shared a close relationship with the Government of Pakistan. With its commitment to developing and promoting a responsive and equitable taxation system, ICAP has always shared unique perspective on the tax policy with the decision makers and on the key drivers of national economic prosperity, he told.
The year 2017 has witnessed good economic growth in all sectors of the economy. The tax collections are promising but efforts to broaden the base needs to be made. Foremost, policy decisions are required, with the objective to broaden the tax base to enhance resources and plug tax leakages. All sectors of the economy must be brought within the tax-net, the President ICAP added.
Riaz A. Rehman Chandia further said that the organized sector in Pakistan is seriously affected by incidence of tax as against non-documented economy unorganized sector. There is a serious need for the Policy Makers to simplify the complex system of determining the tax liability. Immediate remedial measures include abolishing taxes like alternative corporate tax, tax on undistributed profits and super tax, he concluded.