ISLAMABAD: Finance Minister Ishaq Dar has asked the Tax Reforms Commission to finalise its proposals on priority so that these could be shared with all stakeholders.

The commission was constituted last month with a mandate to finalise proposals within a period of 130 days.

After getting an input from stakeholders, these proposals will be placed before the parliament before being incorporated in the next budget.

Dar told the members of the commission to bring tax reforms as “we wish to promote tax culture in the country, broaden the tax net and ensure improvement in tax-to-GDP ratio.”

He called upon the commission to put forth suggestions for devising a proper appellate system to effectively dispose of litigation cases. The litmus test of the recommendations would be the implementation in the short run and increase in the revenue in the medium term, he said.

The finance minister further stated that there are high hopes in the commission to suggest measures for ensuring equitable taxation as well as enhancement in tax-to-GDP ratio.

He urged the members of the commission to come up with realistic recommendations which should facilitate tax-payers and give a client-friendly system which is completely transparent.

The minister said there was broad-based representation in the Commission; both houses of the parliament, the business community, professionals, chambers of commerce and industry and civil society were all covered with a view to chalk out a comprehensive plan to revamp revenue collection system.

Mr Dar claimed that when the PML-N government took over, there was a forecast of total collapse of economy by June 30, “but from day one we took austerity measures and cut down expenditure by at least 30pc, clamped down hard on culture of concessions and SROs, introduced reforms and the result was the economic turnaround which is being internationally recognised.”

“Our improved economic outlook has been acknowledged by international rating agencies, like Moody’s and Standard and Poor’s, while Goldman Sachs economist Jim O’ Neill and BBC have predicted that Pakistan would become world’s 18th largest economy by 2050 from its current 44th position,” Dar further said.

The minister further stated that as a result of our positive measures for economic betterment, we have regained the confidence of international financial institutions like the ADB and the World Bank, which are ready to fund important projects in Pakistan.

He said the hosting of Diamer Basha conference by the US itself was a sign of confidence in our improved economic standing while at one juncture; they were hesitant to come forward for such a project.

He, however, expressed the confidence that the government would keep up with its programme for economic development.

Tax Reforms Commission Chairman Syed Masood Ali Naqvi said that the country had a plenty of resources and potential, which needed to be exploited effectively for economic progress.

He said that the commission was a professional forum and it aims to revamp the tax system as a whole and look for inclusive economic growth.

FBR Chairman Tariq Bajwa gave a presentation on the current state of tax collection and issues being faced by the FBR. He also dilated on administrative and policy reforms introduced by the FBR.

Published in Dawn, October 19th, 2014