LAHORE: Punjab Finance Minister Dr Ayesha Ghaus Pasha on Tuesday acknowledged that meetings with the federal government to resolve the issue of the Infrastructure Development Cess (IDC) collection with the Sindh government failed to bear fruit.

The minister said she asked the Punjab Revenue Authority (PRA) chairperson to take up this matter with the Sindh Revenue Board (SRB) next week to avoid a persistent loss of provincial revenues.

According to the minister, the tax must be collected in the province where the economic activity is taking place.

“The system to collect the IDC is not in place because both Sindh and Punjab are collecting it from importers/exporters whose goods are destined for Punjab. I will now hold another meeting with the federal finance minister to address the problem faced by the business community,” Ms Pasha said.

The minister said the government wants to break the connection between the taxpayer and the tax collector so that money can come directly to the provincial exchequer. Ms Pasha said the PRA should identify new taxpayers and broaden the tax net in order to bring down tax rates and reduce the cost of doing business.

She said the appellate tribunal will help ensure speedy justice to taxpayers who are currently moving other courts for the settlement of tax disputes.

The minister said the general impression among taxpayers is that tax collection agencies do not care about their rights. The PRA and other such agencies are bound to address the taxpayers’ concern, she said.

She noted the provincial government has devised a new procedure under which budget books will be made reader-friendly so that an ordinary taxpayer can understand where their money is being spent.

She said the latest IT technology is being introduced in the PRA to minimise the interface between the tax collector and the taxpayer to stop corruption.

Ms Pasha said the government will establish e-courts and e-filing of appeals soon.

Published in Dawn, February 1st, 2017