KARACHI, June 7: The Institute of Chartered Accountants (ICAP) has suggested doing away with the presumptive tax regime. At a post-budget press conference held on Tuesday, ICAP President S.M. Shabbar Zaidi commented that in the budget 2006-07, the scope of presumptive tax regime had been enlarged and urged the government to consider its gradual end.

He said presumptive taxes were the indirect taxes. It was recommended to promote direct tax culture. “There has been a proposed expansion of revenue of approximately Rs125 billion without any major tax, which is a big achievement,” the ICAP president said, adding that it was heartening to note that the PSDP spending had been increased to Rs415bn. He underlined the importance of building capability and capacity by the government for appropriate utilization of such huge amount.