Islamabad, Pakistan: The Pakistan Business Forum (PBF) has voiced strong opposition to proposed restrictions on public facilities for non-tax filers, deeming them potentially unconstitutional. Instead, the PBF is urging the government to simplify tax return forms, arguing that complex procedures are a major deterrent to tax compliance.
In a statement released this week, the PBF, a nationwide association representing trade and industry, argued that restricting access to public services based on tax filing status could violate fundamental rights. They advocate for a streamlined, one-page tax return, similar to those used in many other developing and developed nations.
“The government should introduce a new, simple, and easy-to-use one-page tax return form,” the PBF stated. “Before passing new tax laws, efforts should be made to ease the process of filing tax returns.” The forum also pointed out that the existence of a large “non-filer” category is, in part, a consequence of the government’s own complex tax system.
The Tax Laws (Amendment) Bill 2024 proposes restrictions on purchasing immovable property and vehicles beyond certain limits for individuals without demonstrable tax compliance. The PBF argues that this approach is flawed and calls for a constitutional review of the proposed bill. They also recommend restructuring the Federal Board of Revenue (FBR) and increasing the use of technology to improve tax administration.
PBF Vice-President Ahmad Jawad confirmed that the forum is preparing a draft of a simplified tax return form to submit to the government. He emphasized that the current complex system is a key factor hindering growth in the number of tax filers.
The PBF further suggested integrating tax reforms and currency stabilization into the broader five-year “Uraan Pakistan” economic program. They cautioned that granting excessive powers to tax authorities to enforce the proposed new laws could lead to increased public discontent.
The forum believes that focusing on a few key economic priorities, including a “Charter of Economy,” would accelerate economic growth. They specifically highlighted the importance of agricultural growth, stating that Pakistan’s GDP growth could reach 8% if the agriculture sector contributes 5% to the economy.
Acknowledging the challenges faced by the business community and the public in 2024, including high electricity bills and interest rates, the PBF called on the government to announce a clear and actionable economic roadmap for 2025. “Pakistan is no longer a business-friendly country,” the statement declared, urging a collaborative approach to address the country’s economic woes.
Finally, the PBF noted the continued weakness of the Pakistani rupee despite successive IMF programs and urged the government to take immediate and decisive action to stabilize the currency. “Without strengthening the rupee, efforts to reduce financial pressures will remain ineffective,” the statement concluded.