ISLAMABAD, May 5: The Senate Standing Committee on Finance, Revenue and Economic Affairs has suggested to the government to levy tax on income of stock exchanges and real estate business to raise maximum revenue for the national kitty.

Chairman of the committee Senator Ahmed Ali following the meeting told Dawn on Friday that the committee suggested to the Central Board of Revenue (CBR), that if the CVT levied on stock exchanges failed to generate the required revenue, then tax be levied on the income of stock exchanges just, as it was levied on the income of other trades.

Mr Ali said that there was an understanding between the CBR and stock exchanges that income tax in the shape of CVT would remain at 0.01 per cent till the year 2007.

He was of the opinion that those, who were involved in the business of buying and selling shares and making income, they should be treated as trading and should be taxed like salaried class and others.

He said the committee directed the CBR to take appropriate measures aimed at making tax collection system easier and to generate more revenue.

He also asked the CBR that steps should be taken to ease the tax burden on common man and that those involved in the real estate business should be brought into the tax net.

Mr Ali said though property was the provincial subject but those people who were involved in the business of selling and purchasing plots and making huge profits should be taxed accordingly.

He said the committee also proposed for early implementation of the benami laws to locate the actual owners of plots who were making income.

“How long poor will be subject to heavy taxes and richer will evade taxes? the chairman questioned.

The chairman said that the committee asked the CBR to consider these proposals for the upcoming budget of 2006-07.

CBR chairman M Abdullah Yusuf informed the committee about the reforms in the tax administration system.