KTBA terms levy on moveable assets blow to savings

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KARACHI: The Karachi Tax Bar Association (KTBA) has termed the measure of 0.5 percent levy on net moveable assets as a blow to generations of savings, which are already very low in the country.

 

At a post-budget seminar organised by the KTBA on Tuesday, Haider Patel, the president of the bar association, said that the 0.5 percent levy on net moveable assets from all individual taxpayers on an annualised basis would be detrimental. That can be defined as the assets generated by individuals out of their taxable income would be repeatedly taxed if the funds are kept in the shape of securities. “This measure is a blow to savings that are already very low in the economy,” he added.

 

On the direct tax side, he rejected the proposal to introduce the requirement for the Inland Revenue Commissioner’s approval in writing for revising the income tax return. “It is feared that the revision of return will provide the taxpayer the same hardship that they are currently facing in revising the sales tax returns,” he added.

 

He criticised the proposal for allowing Inland Revenue officers with 15 years of services in basic scale of 17 and above and a law graduate could be appointed as judicial member. While rejecting the proposal, he said that a law degree holder does not have the experience of a district judge or an advocate of a practicing high court.

 

Patel appreciated the steps taken towards broadening the tax base and urged the government to enforce such measures in true spirit.

 

Abdul Qadir Memon, former president of Pakistan Tax Bar Association, spoke about the direct tax changes introduced through Finance Bill, 2013. He said that the enhanced tax rate on salaried income and withdrawal of the right to adjust tax withheld and tax rebates would hit hard most of the taxpaying class.

 

Adnan Mufti, partner – Shekha and Mufti Chartered Accountants, highlighted the changes in sales tax laws through the bill. He said that the one percent increase in the sales tax rate would have a multiplier effect on the economy and inflation would rise by 30 percent. “Increasing the tax rate is not the solution as such measures hit the people who are presently living beyond their means,” he added.

 

He pointed out that the levy of sales tax on essential items such as milk prepared by replacing one or more constituents would hike inflation by at least Rs15 per litre, which would be another blow to the people.

 

Meanwhile, Tanveer Ahmed, Chief Commissioner Inland Revenue, stated that he would forward the proposals of the KTBA to FBR chairman.




Courtesy:  The News


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