ISLAMABAD: The Pakistan Business Forum (PBF) has opposed restricting public facilities to ineligible citizens for not filing tax returns, saying the proposed law appeared to be against fundamental rights enshrined in the constitution.

In a statement, the PBF — a non-profit association of country-wide trade and industry — instead proposed that tax returns should be simplified to a one-pager as was the case in many other developing and advanced countries because cumbersome tax return forms were one of the key reasons behind poor tax compliance.

It demanded that the proposed tax bill be viewed in the context of the constitution and that the federal government restructure the Federal Board of Revenue (FBR) and increase the use of technology.

Under the Tax Laws (Amendment) Bill 2024, the authorities are seeking restrictions on purchasing immovable property and vehicles beyond certain limits without justifiable tax-compliant resources and assets to broaden the tax base.

The government “should introduce a new, simple, and easy-to-use one-page tax return form. Before passing new tax laws, efforts should be made to ease the process of filing tax returns”, it said, adding that the category of non-filers was also a creation of the government’s own making.

PBF Vice-President Ahmad Jawad stated that the forum is submitting a draft of a simplified tax return to the government. He highlighted that the complex tax filing system is a key reason for the stagnant growth in tax filers.

Moreover, the tax reforms and the strengthening of the currency should be part of the five-year “Uraan Pakistan” programme, the PBF said, adding that granting broad powers to tax authorities to enforce the proposed new tax laws would lead to increased public unrest.

The PBF suggested that economic growth would accelerate if all stakeholders agreed on four or five key issues, including the Charter of Economy. Advising the government to focus on agriculture sector growth, the PBF said the country’s gross domestic product (GDP) growth rate would reach 8pc only when agriculture growth contributes 5pc to the economy.

It said 2024 was a challenging year for the business community and the public, given high electricity bills and interest rates. Hence, the government should announce a clear and actionable economic roadmap for 2025 to ease these challenges. “Pakistan is no longer a business-friendly country”, said the statement, calling for a collective approach to address these issues.

It pointed out that despite the second IMF programme in quick succession, the rupee had failed to strengthen, and the government must take immediate and decisive actions to stabilise the currency. “Without strengthening the rupee, efforts to reduce financial pressures will remain ineffective.”

Published in Dawn, December 31st, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Not cricket
Updated 06 Apr, 2025

Not cricket

It is high time that the PCB sets things right; even if it demands a complete overhaul of the system.
Balochistan deadlock
Updated 06 Apr, 2025

Balochistan deadlock

Akhtar Mengal’s demands to release women activists should seriously be considered.
Escalating brutality
Updated 06 Apr, 2025

Escalating brutality

The world’s patience is running out. Israel must be held accountable under international law for war crimes.
Electricity relief
Updated 05 Apr, 2025

Electricity relief

If govt ensures that requisite power reforms are implemented, it will earn much praise for reforming a vital segment of the economy.
Trump’s trade wars
Updated 05 Apr, 2025

Trump’s trade wars

Shoddy math applied by US to indiscriminately penalise its trading partners signals the end of an era of global trade liberalisation.
Legalised land grab
Updated 05 Apr, 2025

Legalised land grab

The Modi government from its inception has been attacking India’s minorities, the largest such community in its crosshairs being the Muslims.