The National Assembly Standing Committee on Finance while meeting on Tuesday advocated for reducing General Sales Tax (GST) from the current 17 pc to 15pc for the next fiscal year 2017-18 to give relief to people. It also urged for expanding the tax base by introducing further structural reforms in the prevailing system.
The committee meeting was chaired by Qaiser Ahmed Sheikh, Member of National Assembly (MNA), and MNA Asad Umar, senior leader and policy head of Pakistan Tehreek-e-Insaf.
Mr Umar mentioned about the reliance upon withholding and indirect taxes should be reduced by taking forceful measures. He also advised 0.5 pc be imposed as the net wealth tax, which should be adjustable against the income tax and this measure would help generate an extra Rs 300 to Rs 400 billion a year. He said the net wealth tax could be gradually increased in future.
The committee also recommended the reassessment of real estate property while simultaneously the committee also suggested reducing property tax. MNA Mustafa Mehmood also mentioned that usage of digital money should be promoted in order to document the economy.
 Umar voiced his opposition to providing amnesty schemes saying that this would encourage the tax evaders. He added that the government should give exemplary punishments to tax evaders in a bid to deter the habit of tax evasion.
The next single agenda meeting to discuss and debate the budget proposals has been called on April 26 and all concerned stakeholders and departments have been extended an invitation to attend it.
On the issue of properties bought abroad by Pakistani nationals, Umer mentioned that he had forwarded a request to the concerned departments with respect to the validity of the transactions but had not received any positive response.
In the next regular meeting of the officials, National Accountability Bureau (NAB), Federal Investigating Agency (FIA), Federal Board of Revenue (FBR) and Securities and Exchange Commission of Pakistan (SECP) would be summoned to reply to the questions raised by Umar, stated Sheikh.
