KARACHI, July 3: Director General Large Taxpayers Unit (LTU), Karachi, Mukhtar Ahmad Gondal said on Tuesday that Finance Act 2007 was a step forward towards implementation of reforms agenda initiated by the Central Board of Revenue (CBR) since 2001.

Speaking at the post-budget seminar on Finance Act 2007 organised by country’s first Regional Tax Office (RTO), Karachi, at the Income Tax building he said that the act was aimed at simplifying tax laws and make them compatible.

Mr Gondal said the act would ensure reduction in distance between taxpayers and tax collectors due to simplification of Income Tax, Sales Tax and Federal Excise Duty (FED) laws.

Above all he said, it was aimed at sharing of responsibility by entire civil society where every individual is given an opportunity to strengthen country’s law. The finance act, he further said, involved and gave responsibility to such institutions like chartered accountants, State Bank of Pakistan, and the corporate sector to implement tax laws on trust.

The concept of trust and confidence placed on taxpayers to fulfil their tax liability on the basis of voluntary compliance had been bearing fruits for the last four years and the new act of 2007 is a step forward, he added.Similarly, he said there was a major change in the mindset of the tax collectors and their responsibility had doubled to ensure that the concept of voluntary compliance works successfully and there was no loss of revenue.

The foremost change brought in by the finance act is the concept of group taxation, which will help restructuring and consolidation of corporate entities under group relief. Up-till-now, Mr Gondal said there had been family businesses whereas history had shown that partnerships did not last and the longest period witnessed in Pakistan for partnership was 35 years.

As a result of this situation, he continued, small investors have been suffering, and to help corporate sector to grow there was a need to enact laws and implement them in a professional manner.

There were six panels, which presented their papers on different topics relating to the new act. The speakers at the seminar included Habibullah Khan, Vishno Raja Qavi, Dr Tariq Masood, Mushtaq Qazi, and Muhammad Ibrahim Vighio.