Policy Research Institute of Market Economy, or PRIME Institute held a conference in Islamabad on Thursday, titled, “Towards Flat Taxation, The New Paradigm”, unveiling a breakthrough study aimed to increase tax revenues by lowering the tax rate, and simplifying the tax code.
Dr Ikram ul Haq and Huzaima Bukhari co authors of the study Towards Flat, Low Rate, Broadand Predictable Taxes were joined by Dr Shumail Daud former President Rawalpindi Chambers, Ali Salman, Founder and executive director of PRIME, and President Institute of Cost and Management accountants Pakistan Kashif Mateen Ansari.
The study co authored by renowned lawyers, and academics, Huzaima Bukhari and Dr. Ikramulhaq is groundbreaking in its claims and proposals.
Huzaima Bukhari claimed that by simply lowering taxes and eliminating the complexities within the system, national internal revenues could be raised to Rs. 5 Trillion annually.
Her proposals included a 10 tax on individuals, 20% on businesses, 5% single stage sales tax, and a 5% single slab customs duty.
Her co-author Dr Ikram said that Pakistanis are a heavily taxed as a nation, paying an 39 percent on services, and a 14% adjustable income tax deducted at source.
He revealed that 89% of the entire sales tax is collected through one hundred companies.
President ICMA Pakistan Kashif Mateen endorsed the proposals on the grounds of justice. He said that complexities in the system create opportunity for corruption, and discouraged individuals from compliance. He said that the FBR imposes about 60 different withholding taxes.
Dr Shumail Daud put his weight behind the proposals, stating that flat taxes are common sense. He was positive that a simplified tax system would help raise revenues, broaden the tax base and encourage voluntary compliance.
Ali Salman lauded the authors for their detailed work, stating that it would lay the foundations for a long overdue, and much needed discussion on Taxpayer rights, and fiscally responsible governance.
Ali Salman also announced the launch of the PRIME institute Center for Fiscal Reform, a dedicated platform advocating reform in the areas of taxation, public debt, and public expenditure
Seminar in Media
April 29, 2016: Business Recorder reported as: Tax proposals for Budget 2016-17 Need for new tax model
April 29, 2016: Business Recorder reported as: Speakers propose Flat Taxation, Simplifying Tax System
April 30, 2016: The Express Tribune reported as : The new paradigm: Lower tax rate leads to higher revenue: experts