Prime Minister Imran Khan on Monday urged the traders to support the government in its endeavour to widen the tax net, terming the taxation a key to revive the national economy and dignity in the comity of nations.
Addressing the ceremony here after an agreement reached between the government and the small traders over the mechanism to register the businesses for taxation, the prime minister said the government was resolved to bring ease of doing business by removing all the official and systemic impediments.
Advisor on Finance Abdul Hafeez Shaikh, Advisor on Commerce Abdul Razzak Dawood, Special Assistant to PM on Information Dr Firdous Ashiq Awan, Federal Board of Revenue Chairman Shabbar Zaidi, Board of Investment Chairman Zubair Gilani and traders’ representatives from across the country attended the event.
Under the agreement, committees had been formed at district and sub-district levels comprising two members from the traders’ community and one from the government, which would assist the registration of small traders for their onward inclusion in the tax system and dispute resolution.
The prime minister said the traders had generously supported his mission of building the cancer hospital but they could not contribute to the revenue generation with that spirit just because of the complex taxation system and the government’s inability to spend the tax money on public welfare.
He said the businessmen had always complained about the corrupt tax machinery, which also harassed them once they were registered in the tax net.
He lamented the practice by previous rulers of spending the tax money to support their luxurious lifestyle which led to the loss of people’s trust in the tax system.
Contrarily, he said, the incumbent government had slashed the PM House’s expenditures by Rs 300 to 350 million and those of the PM Office by Rs 350 million. The Federal Government’s expenses had also been reduced by Rs 40 billion, besides the freezing of budget by the Pakistan Army to support the national economy. The prime minister said he supported his household expenditures on his own salary and had set up no camp office. The foreign visits made by him incurred around 10 times lesser expenses than those by the previous rulers. Even his visit to Davos starting Tuesday would also cost ten times lesser than the ones by the prime ministers in the past. It was just to show the realisation that the country was pervaded by the poverty and it was inevitable to develop the tax culture, he added. He said Pakistanis were one of the least tax paying nations and the country would not progress unless the people, including the business community, realised the fact.
He said the government had allocated Rs 190 billion for its anti-poverty Ehsaas programme, but it still required more tax revenue to run schools and hospitals, and provide drinking water to the people and skill training to the youth.
He said the countries bearing the debts burden could never enjoy dignity and even could not formulate an independent foreign policy. He recalled that the previous governments had been fighting the alien wars just for the sake of money and in the process made the country face far greater loss than the aid received. He reiterated his government’s plan of industrialisation by removing all obstacles in the business, though the country had already jumped by 28 points in the international ranking for ease of doing business.
He said the government had the realisation of public suffering owing to the inflation and was constantly deliberating the measures to control it. It had abolished Rs 400 of GIDC on each fertiliser bag that would also help reduce the prices of eatables, he added. Moreover, he said, the government had also abolished the licensing of 102 small businesses in order to let them flourish.
The prime minister told the gathering that the nations were destined to face tough times but they sailed through with the public support. Lauding the efforts of his economic team, he urged the traders to own their government and resolved to put in all-out efforts for the resolution of their issues. In his address, Finance Advisor Abdul Hafeez Shaikh said the signing of agreement was a welcome step which would help enhance the tax net and ultimately lead to the financial independence of the country. He said among the government’s priorities included the repayment of debt, increasing trade, particularly the exports, and attracting foreign investment. Highlighting the government’s achievements, the advisor said the stock markets had increased by 50 percent, exports were on rise and trade deficit on decline. The government’s all efforts had also been recognised by international agencies, including World Bank, International Monetary Fund, Bloomberg and Moody’s. FBR Chairman Shabbar Zaidi said the agreement between the traders and the government would help revive the public trust in tax machinery. Tax rate had also been reduced for the small traders, he said, assuring all-out cooperation in the future. Leaders of the traders’ bodies also addressed the gathering and lauded the government’s measures for ease of doing business.
Meanwhile, Imran Khan said that from the day first, the government had decided to transform Pakistan into an industrial power and for this purpose, assured that the government and its economic team would extend all facilities and support to the industrialists. The prime minister was talking to a representative delegation of the newly elected presidents of different chamber of commerce and industries of the country. The delegation included Muhammad Ahmed (Islamabad Chamber), Malik Muhammad Ashraf (Sialkot Chamber), Rana Muhammad Sikandar Azam (Faisalabad Chamber), Mian Umar Slaeem (Gujranwalla Chamber), Ali Hussain Asghar (Lahore Chamber), Mir Naveed Baloch (Gwadar Chamber), Shahid Hussain (Khyber Pakhtunkhwa Chamber), Rizwan Ali (Gilgit-Baltistan chamber) and others. Upon a proposal of the delegation, the prime minister directed the FBR chairman to hold open house on each Monday and hear the issues faced by the industrialists. The prime minister appreciated investment in the information technology, Halal food and medicines and directed the concerned ministries to provide all facilities in this regard. The delegation presented proposals over tax refunds, supply of gas and power to the industries, revival of sick industrial units, special economic zones and increase in exports. They also appreciated the measures taken by the prime minister and the government’s economic team for the promotion of business and industrialization in the country. Also, Imran Khan, in order to provide relief to common man and ease of doing business to small traders, directed the provincial governments to abolish the system of different licenses for business activities at local government level. Calling for the abolition of 74 different licenses, he also directed the provincial governments to simplify the procedure of required licenses and introduce an automated system by using modern technology. The prime minister directed the provincial governments to complete the process of abolishing unnecessary licenses within three days. During the meeting about licensing regime in the provinces, the prime minister was told that in the current system the businessmen were required to obtain around 150 different licenses from metropolitan and municipal corporations, town committees and other institutions. Complaints of corruption, bribery and harassment of small traders were very common in the licensing system, he was told.
He directed to introduce technology based automated system, where inspection was required, so as not only to simplify the system but also to eliminate the trends of corruption, bribery and harassment.
