PBF Opposes Proposed Tax Restrictions, Advocates Simplified Tax System

The Pakistan Business Forum (PBF) has voiced strong opposition to proposed restrictions on public facilities for non-filers of tax returns, deeming such measures unconstitutional and contrary to fundamental rights. In a statement, the PBF called for the government to simplify the tax return process to encourage compliance and broaden the tax base.

Simplified Tax Returns to Improve Compliance

The PBF, a non-profit association representing trade and industry across Pakistan, emphasized the need for a streamlined, one-page tax return form. Highlighting examples from other developing and advanced economies, it noted that cumbersome and complex tax forms are a significant barrier to compliance in Pakistan.

“The government should prioritize simplifying the tax filing process instead of introducing restrictive laws,” the PBF stated. The forum also criticized the creation of non-filer categories, describing them as a result of the government’s own policies.

Concerns Over Tax Laws (Amendment) Bill 2024

The PBF expressed reservations about the proposed Tax Laws (Amendment) Bill 2024, which seeks to impose restrictions on purchasing immovable property and vehicles without justifiable, tax-compliant resources. While acknowledging the need to expand the tax base, the forum argued that granting broad enforcement powers to tax authorities could lead to public unrest.

PBF Vice-President Ahmad Jawad announced that the forum is submitting a draft of a simplified tax return to the government. He stressed that the current system’s complexity is a major factor in the stagnant growth of tax filers.

Call for Economic Reforms

The PBF urged the government to include tax reforms and currency stabilization measures in its proposed five-year "Uraan Pakistan" programme. It highlighted the importance of stakeholder consensus on key economic priorities, including the Charter of Economy, to foster sustainable growth.

Focusing on the agricultural sector, the PBF suggested that achieving a 5% growth rate in agriculture could help Pakistan’s GDP reach 8%. It called on the government to develop a clear and actionable economic roadmap for 2025 to address current challenges, including high electricity bills and interest rates.

Economic Challenges and Recommendations

The forum described 2024 as a particularly difficult year for the business community due to rising costs and economic uncertainty. It also criticized the lack of impact from consecutive IMF programmes, noting the failure to stabilize the rupee.

“The government must take decisive action to strengthen the currency,” the PBF warned, adding that without a stable rupee, financial pressures on the economy would persist. It reiterated the need for collective efforts to make Pakistan a business-friendly country once again.

The PBF’s proposals underline the importance of simplifying the tax system, stabilizing the currency, and fostering collaboration among stakeholders. As Pakistan faces mounting economic challenges, the forum’s recommendations offer a roadmap to promote growth, improve compliance, and reduce public unrest.

This article was published at PBF Urges for Simplified Tax Returns Rather Unrealistic Restrictions