LAHORE, Dec 10: The government should reform the tax law to make it investment friendly and slash the tax rates for an early economic recovery.

This was stated by Lahore Chamber of Commerce and Industry President Dr Khalid Chowdhry on Monday. He was speaking at a seminar on new income tax ordinance 2001.

It was organized by the LCCI in collaboration with the Small and Medium Enterprize Development Authority to elicit the opinion of the business community and develop a consensus on it.

Dr Chowdhry said the tax laws were hindering rather than promoting normal commercial activity, and, therefore, need to be reformed in order to make them business-friendly.

He was happy to note that the government had decided to introduce new income tax ordinance incorporating the suggestions of the business.

The draft of the new ordinance is being reviewed by economic professionals and experts in order to shift from higher rates to broadening of the base, widening of the tax net, and removal of the irritants.

The chamber president said time allowed for review of the new law was too short despite the government commitment to the performance criteria.

Besides, the technical experts of the International Monetary Fund themselves feel that time for discussion should be much longer.

Moreover, he said, the discretionary powers of the tax assessing authority had been retained though under the garb of commissioner income tax. In the existing customs law, he added, the powers vest in collectors but the discretion of the preventive officer and appraiser was very well known to everyone.

Dr Chowdhry dubbed the treatment of income from pension and gratuity, etc proposed in the draft law as oppressive. It reflected the insensitive attitude towards the old and the weak, he stated.

LCCI standing committee on income tax convener Naeem Shah also spoke on the occasion.