KARACHI, March 30: Central Board of Revenue Chairman Abdullah Yousuf has conceded that taxation on capital goods is not a right decision. "We will have to let the industrialists to come first and invest by brining plant and machinery,"
he said while addressing members of the Federation of Pakistan Chambers of Commerce and Industry here on Tuesday.
The new CBR chief said that there was also a dire need to rationalize and streamline the current taxation structure. "The CBR is trying its utmost to make the tax collection system simple and taxpayer friendly."
He stated that while collecting the targeted revenue was very important for the government and the society, it was equally important that the system of tax collection should be simple, easy and should provide confidence to taxpayers.
The CBR chief said the revenue collection was not a problem. It is better to create a conducive environment for the taxpayers instead of running after the taxpayers.
He said country's history with relation to the relation of taxpayers and tax collectors had not been very good. He said time has come to create a cordial relations between them in order to achieve a high rate of growth. He referred to the GDP growth rate of China, which is rising by 10 per cent per annum.
Mr Yousuf said that level of investment, both local and foreign, had been very low due to unfavourable business environment. "Conducive environment is necessary to lure the investors which would also help in alleviating poverty and unemployment."
The CBR chief said three years back, the government had taken a decision to bring changes and reforms in the CBR, but the exercise had not produced any desired results. However, some benefits had come from various decisions and some good things had started but still a very long way to go.
Mr Yousuf said more and more changes and reshuffling were being made in the government machinery to change the mindset of the taxpayers. "However, it is a very tough challenge."
The CBR chief said that the automation of CBR and its other related departments had been done partially but there was a need to achieve full automation to solve the problems of the people.
He admitted that some sectors are facing problems due to anomaly in the duty structure on finished goods and raw materials. The CBR has expedited its efforts to rectify the situation.
Earlier, FPCCI President Riaz Ahmed Tata said it was high time that the government and the private business sector started working together as partners in socio-economic development of the country.
"Without the positive cooperation and active support of the CBR and the private business sector, the socio-economic objectives of rapid increase in industrialization, exports, employment, poverty alleviation and improvement in the quality of the life cannot be achieved."
Mr Tata stated that the private business sector and the CBR should work closely and actively to facilitate efficient and effective achievement of each other's goals.
