Pre budget proposals: ‘Sales tax should be collected by provinces’

Islamabad: Former Finance Minister of Sindh Asad Ali Shah has said that there is a need to focus on digital solutions for transparency of budget making and push for skill development, education, and health sector particularly human capital.

Mr Shah was addressing a hybrid public-private dialogue to discuss ‘Pre-budget proposals and better business regulations’ jointly organised here by Sustainable Development Policy Institute (SDPI) and Institute of Business Administration (IBA), Sukkur.

Stressing on re-examining the entire government tax structure, he said that the government should create an environment for ease of business with reducing the cost of business. Member Sindh Revenue Board Mushtaq Kazmi informed the participants that most of the business enterprises need to file five taxes which is quite a hassle. Thus, Sindh Revenue Board and other revenue agencies are signing MoU with FBR to have a central portal for a single return for easing of business. He said that National Tax Council will be advised to reduce the tax rate. Sales tax in terms of collection should be with the provinces, he opined.

Abdul Majid from Sindh Revenue Board was of the view that SBR is improving the ease of business by using Information Technology. Thus, the registration process has been eased and tax collection is being made electronically.

Dr Vaqar Ahmad, Joint Executive Director, SDPI, observed the budget should respond to challenges such as evaluating why foreign investment inflows are declining and how to capitalise on opportunities arising from Covid-19. Likewise, for post-pandemic recovery, Sindh will need to expedite disbursements to support micro-enterprises.

Shaista Ayesha from SEED Ventures called for developing the capacity of youth, IT interventions, gender diversity in the focused areas. Sajjad Aslam, President, Association of Chartered Certified Accountants, Pakistan, asked to add 10-15 % SMEs to the government procurement.