Sohail Altaf suggests an out of box solution for broadening the tax net
There is lack of trust between traders and Federal Board of Revenue (FBR), Tajir Dost scheme will only be successful when there is mutual trust between FBR and traders.
Rawalpindi Chamber of Commerce and Industry group leader and former president Sohail Altaf has presented an out-box solution to increase the tax net. In a statement he suggested that necessary arrangements can be made in the chamber to facilitate and a counter of FBR can be set up for collection of tax returns.
It should be made mandatory to be a member of a chamber of commerce and industry if anyone is doing any big or small business. We have major chambers and chambers for small businesses. It should be left to the choice of the individual to choose any of the two chambers, he suggested.
A token membership fee of Rs2,000 or a nominal amount should be charged from such new members. Tax returns should be filed in the chamber and 20 per cent of the tax amount should be returned/refunded to the respective chamber as service charges.
Since the tax return would be filed in the chamber, chances are that it will be close to reality as it will be difficult to hide one’s income in front of business colleagues. Interest of chamber in service charges of 20 per cent will encourage higher declarations.
There is mistrust between FBR and traders, have to look for an out-of-box solution: Sohail Altaf
