ISLAMABAD, March 11: The government is committed to withdrawing all tax exemptions currently available to individuals and various sectors.

Addressing a news conference here on Thursday, the newly appointed chairman, Central Board of Revenue (CBR), Muhammad Abdullah Yousuf said that Pakistan had to go with international community and as pledged to them would have to withdraw all tax exemptions.

"There is no concept of subsidy and support in any country. The exemptions will have to go," he stated. Elaborating his agenda, Mr Yousuf said that he would focus on the reform of the tax administration. However, he said that his emphasis would be on those areas, which were directly or indirectly related to external and internal investment.

He said that the investors could only invest their money in a country where their investment would be safe and they see a reasonable return accruing on their investment. The chairman categorically stated that the on-going process of reform of tax administration would continue without any hindrance.

Mr Yousuf admitted that Pakistan's taxation system and procedures were very difficult, which, he said, needed to be made more simpler and easier for the common taxpayers.

He said that the tax collectors were harassing the taxpayers. He said this attitude needed to be changed to create a positive image of the CBR among the people.

He said that every attempt would be made to do away with withholding taxes and the procedures of the turnover tax of income tax would be made simpler. The chairman said that all functions of income tax would be automated by 2005. He said electronic filing of income tax returns would be introduced by the year 2007.

He said that all the potential would be fully exploited to achieve the revenue target set for the current financial year. He said that sales tax audit would be made easier, transparent and taxpayer-friendly to reduce the chances of harassment of taxpayers by auditors.