Islamabad: Islamabad Chamber of Commerce President Sheikh Amir Waheed has said that people avoid entering the tax net because of high tax rates, according to a news report. He said that the government should focus on a reasonable reduction in taxes in the upcoming budget, so people would feel compelled to pay taxes, tax net would expand and tax revenue will increase.
Speaking during a visit of Rawalpindi Member Provincial Assembly (MPA) Raja Haneef Advocate, he said that the government should consider abolishing the Super Tax that had been imposed in 2015 for restoration of Internally Displaced Persons (IDPs). Super Tax imposes 3% tax on income greater than PKR 500 million and 4% on all banks.
He further said that 17% Sales Tax is too high, and not only has it made life difficult for common man by increasing the inflation but has also increased the cost of business several times. He emphasised that the government should bring the Sales Tax below 10% in the next budget. Recommendations were also made to change the system of Withholding Tax and to reduce taxes on corporate income.
