The federal cabinet has given in-principle approval to the amendments in three tax laws for recovery of tax worth trillions of rupees stuck due to court cases.

The amendments will be presented in the form of a bill in the National Assembly after the approval of the amendments in the light of the discussion in the Cabinet.

Their aim is to bring to an early end the revenue matters that have been pending for years due to technical and other reasons.

Prime Minister Shehbaz Sharif in a meeting with the Chief Justice of Pakistan Justice Qazi Faiz Isa some time ago also pointed out the issue that cases worth trillions of rupees remain stuck due to stay orders or pending tax cases due to other reasons.

It is clear from the decision of the cabinet meeting held under the chairmanship of the Prime Minister that the reasons for delay in the cases have been reduced possibly so that the final situation of the case can be clarified soon.

For example, there are four platforms in the current law, of which the first forum of Commissioner Appeals is proposed to be abolished, after which the three forums of Appellate Tribunal, High Courts and Supreme Court will remain. High Courts have been mandated to decide tax cases within 6 months. Matters have also been simplified through other proposals.

This situation has been going on for a long time in our country that due to the length of the procedure and the stay orders given by the courts, the tax cases are pending due to which many problems arise.  After the proposed amendments are approved by the National Assembly, it can be hoped that all the requirements of justice will be observed in the decisions of tax cases and cases will not be pending for a long time on the basis of technicalities or details.

The pending decision in tax cases is seen in a situation where the number of tax payers is much less than what should actually be there.  Many sectors of our economy still seem to be outside the tax net or receive very little tax.

Efforts are being made to bring a large number of people from agriculture, housing, services and other sectors into the tax net so that resources can be pooled for everything from construction of roads, bridges, dams to education, training and welfare works.

The government machinery should work properly and every sector of national life, including industry and trade, should flourish.

After a possible increase in the number of taxpayers, if the delay in the decisions of tax cases continues, a disturbing situation may arise. Therefore, there is a greater need to maintain ease and flexibility in the processing of tax cases.

It is also worth noting that in a country with a huge population, the number of taxpayers is woefully small and the elite who own the country's resources feel reluctant to pay direct taxes.

Increase and inflation resulting from electricity, gas, petrol rates and levies are the worst forms of indirect taxation. When the IMF and the World Bank ask us to increase the tax net, it means moving towards a situation where indirect taxes are avoided.

The current situation in our tax collection agencies and departments in the form of paper and paperless taxes has to be changed. This work is possible only with political determination. It is good that in the coming time we see our tax system being molded in the mold of principle and honesty.

It is to be expected that the aforementioned legal amendment bill will be presented in the National Assembly soon.

Meanwhile, the tax net is also being widened. The irony is that in our country, we do no prepare proper policies and instead of weeding out theft of commodities, we increase prices and burden the citizens with more taxes. Whenever there is a question of raising revenue, the moneylenders impose new taxes on the already poor class.  Duties are increased on petrol and electricity, gas and other such basic necessities. The burden of the salaried class is more. They are harassed and then proudly claim that we have been able to collect so many billions of additional taxes. If we really want to improve the tax system.

Online and digital payments should be made mandatory by ending the chain of cash payments to register all types of economic activity and bring traders into the tax net.

Currently, Lahore, Islamabad and in big cities like Rawalpindi, it is a situation that the shopkeepers who do business of lakhs of rupees every day have regularly written that the facility of payment by card is not available. If you insist, the shopkeeper will say that payment by card is costly as there will be an additional charge of 3%.  Therefore, the user feels comfortable in getting rid of life only by paying in cash.  Nowadays, where there is a situation where beggars have gone online.  In this modern era, if the card payment facility is not available even in big cities, then it is not the incompetence of the FBR officials, then what else?

Make a code of conduct according to the laws available from but oblige everyone including shopkeepers that where there is no facility of online payment, there will be no business.  He will be able to say that he has earned ten thousand. In the service sector, persuade doctors, lawyers and property developers to pay online. This is the general formula to fix the economy.

A very large part of the tax collections is the direct taxes that are collected from every rich and poor. For example ghee, sugar, oil, pulses, tea leaves and other such items and 700 rupees per day wages. Whether it's a working laborer or a billionaire, everyone has to pay the general sales tax at the same rate. Sometimes one wonders, if it's a general sales tax, why does the consumer pay it? The seller should pay GST.  As simple as that.

Published in The Daily National Courier, April, 20 2024

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