KARACHI: Expressing deep concern over the narrow tax base, Pakistan Tax Bar Association (PTBA) on Friday urged the government to setup a data mining company for maintaining a centralised database of all persons owning properties, motor vehicles, credit cards, utility connections, purchasing air tickets and stocks.

In its lengthy budget proposals 2018-19, PTBA pointed out that a centralised data mining company could work in line with Nat­io­nal Clearing Company of Pakistan Ltd (NCCPL) which works for clearing stock exchange share tran­sactions.

The tax bar suggested the government should make it mandatory for the submission of quarterly statements by such regulatory bodies like Registrars and housing societies for registration and transfer of immovable properties it may be industrial, commercial, residential or agricultural.

The government should restrict the exemption from taxation to home remittances by overseas Pakistani up to $100,000 and only for fresh industrial investment.

The tax bar has demanded that corporate tax be rationalised since the current rate is very high as compared to other developing and developed markets. Due to multiplicity of taxes for the corporate sector, the actual tax rate goes up to 37 per cent i.e. 30pc normal tax, 2pc workers’ welfare fund, 5pc workers participation fund.

It appears that the legislature aims to recover more taxes from the existing documented sector instead of broadening the tax base. The parallel application of ACT with Minimum Tax under Section 113 is inappropriate, the body said.

The PTBA demanded that either Minimum Tax or ACT should remain in forced or else if ACT has to be retained the practical issues related to ACT should be removed and made easier to follow.

Published in Dawn, April 7th, 2018