FPCCI and FBR Propose 30% Tax on Bank Deposits of Non-Filers
Islamabad: In a significant move towards taxation reform, the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) President Atif Ikram Sheikh, along with Federal Board of Revenue (FBR) Anomaly Committee Chairman Gohar Ijaz, has proposed a 30% tax on bank deposits of non-filers. This recommendation was announced during a press conference held at the FPCCI Headquarters on June 25.
Read More: Tax on Property Sales For Non Filers Proposed
Targeting Black Money
Chairman Gohar Ijaz highlighted that the proposed tax aims to address the issue of black money. He stated that approximately 90% of the funds held by non-filers in banks are unaccounted for. To ensure compliance, Ijaz suggested that non-filers should be restricted from withdrawing their funds until they pay the 30% tax and convert to filer status, rather than imposing a ban on foreign travel.
Potential Revenue Generation
President Atif Ikram Sheikh pointed out the immense revenue potential of this tax, estimating that it could generate PKR 13 trillion in just one day. He criticized the government’s current taxation policies, which impose PKR 2 trillion in taxes on the general public, and called for a reduction in government expenditures by 4.33%. Sheikh proposed submitting a detailed plan to the National Assembly to address these issues.
Additional Recommendations
In addition to the 30% tax on non-filer bank deposits, further recommendations included:
- Terminating agreements with Independent Power Producers (IPPs) to alleviate financial pressure.
- Introducing an Ushr tax on agricultural income to ease the burden on salaried individuals and exporters.
- Simplifying the tax return process by implementing a five-line or one-page form to significantly increase the number of filers to 50 million. Sheikh emphasized the need to eliminate the concepts of late-filers and non-filers to ensure a fair and equitable taxation system.
Conclusion
These proposed measures by the FPCCI and FBR aim to streamline Pakistan’s. Taxation system, curb black money, and create a more equitable financial landscape. The suggested reforms, if implemented, have the potential to generate substantial revenue. And reduce the fiscal burden on the general public, promoting a healthier economic environment.
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