Political commitment is essential to implement tax reforms: Economists
Balanced tax system and ease of regulatory measures for macroeconomic stability: Policy discussion organized by SDPI
Pre-budget consultation titled “Improving Revenue and Public Expenditure for Inclusive Development” at a local hotel here
KARACHI ( Web News )
In the pre-budget consultation with stakeholders, experts have demanded the government to moderate and simplify complex regulatory measures in the conflicting tax system for macroeconomic stability in Pakistan. Policy Institute for Sustainable Development (SD) PI) in collaboration with Revenue Mobilization, Investment and Trade (REMIT) held a pre-budget consultation titled “Improving Revenue and Public Expenditure for Inclusive Development” at a local hotel here. In his welcome remarks, Governance Advisor and Tax Lead, Remit said that the UK is a close partner of Pakistan in its journey of development. He said that the World Bank has indicated in its report that if proper interventions and reforms are made in Pakistan’s economic system, Pakistan’s economy can exceed 5 trillion dollars by 2057. He said that revenue mobilization is one of the challenges faced by Pakistan. Remit team leader Hameed Yaqub Shaikh briefed the participants about Remit. There is a program. He said that the purpose of the discussion was to provide recommendations and solutions to the government to provide guidelines for reform measures. Very important. There is a need to reassess one’s behavior during the process of getting the program from the IMF as the tax-to-GDP ratio is below double figures and the tax burden is very heavy on the salaried class. This leads to tax evasion. Now is the time to reform the tax system so that the burden can be distributed fairly. He said that Pakistan should demand the IMF to adjust its policies according to Pakistan’s macroeconomics. He further said that due to the increase in utility charges, gas, electricity and petroleum charges, the country’s industry will remain in crisis. President of Pakistan Tax Bar Association Anwar Kashif Mumtaz said that public lack of trust in revenue departments is a hindrance in promoting the culture of paying taxes. Director of Engro Powergen Qadirpur Limited Qaiser Bengali said while participating in the discussion. that there is no policy to consider the strategic factor while privatizing institutions. He emphasized that privatization of management and not of assets is necessary as the latter are of strategic importance. Privatization Commission of Pakistan Member Board Naheed Memon said that the country needs a solid privatization policy for medium and long-term goals. He said that the biggest obstacle in stimulating investment in Pakistan is the complex regulatory environment. He further said that it is very important to give priority to stimulating domestic investment and foreign direct investment (FDI) should not be the only focus. Asif Haroon said that in terms of exports and dollar-rupee parity. The country is stagnant. Tax policy implementation and disparity in taxes paid by different sections of the society and lack of public confidence is a serious obstacle in the way of this problem, which needs to be overcome. Chairman Export Processing Zones Authority Saif Junejo said that 6 export processing zones of Pakistan are being reduced as Karachi Export Processing Zone (EPZ) consists of 3000 acres which has been developed in phases to only 300 acres. However, compared to Jebel Ali Free Zone’s 104 billion dollars, Karachi Export Processing Zone earned only 600 to 700 million dollars, which is about 75 percent of the national export processing zone’s revenue. Social Security Department Secretary Rafiq Mustafa said. The biggest obstacle to the effectiveness of government spending is the quality of governance and provincial and national institutions that are part of the governing process such as the public financial management system, procurement and human resource hiring system, and monitoring and evaluation (M&E) system. Former Chairman FBR Shabar Zaidi said that to create a favorable environment for investors, it is necessary to bring changes in the existing tax models for efficient services and speedy processing mechanisms.