By Commerce Reporter
LAHORE- The Lahore Chamber of Commerce and Industry on Friday welcomed the government’s recent announcement to combat large-scale tax evasion, as revealed by Federal Finance Minister Muhammad Aurangzeb and FBR Chairman Rashid Mahmood Langrial in a recent press conference that Pakistan’s top 5% of earners are responsible for evading an estimated Rs. 1.6 trillion in taxes annually.
While appreciating this move to address tax evasion, LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry stressed the need for a comprehensive approach. They called for a dual strategy including targeting tax evaders while also rewarding and motivating those taxpayers who comply with their obligations.
They said that LCCI welcomes the government’s action against the wealthy tax evaders who have been depriving the nation of its rightful revenue. However, we believe that equally important is the need to incentivize and support the honest taxpayers who contribute to the nation’s growth. Recognizing and rewarding these taxpayers will foster a culture of compliance and fairness.
The LCCI office-bearers urged the government to ensure that the announced actions against high-income tax evaders are implemented quickly and effectively. The crackdown on this group should be swift, transparent and without any compromise.
They called for the creation of a rewards system for compliant taxpayers saying that this could include tax reductions, public recognition and special business support programs to encourage continued compliance. Additionally, a “National Tax Compliance Award” could be established to honor outstanding contributors to the tax system.
Mian Abuzar Shad, Engineer Khalid Usman and Shahid Nazir Chaudhry said that LCCI advocates for including untapped sectors and individuals who earn taxable income but remain outside the formal tax system. Simplifying the tax registration and filing processes through digital platforms would encourage more individuals and businesses to join the tax net.
They said that tax enforcement should focus on evaders and not place undue pressure on honest businesses, particularly SMEs. It is crucial that the tax system is fair, transparent and does not burden compliant taxpayers.
They also urged the government to collaborate more closely with business leaders to design tax policies that are both effective and business-friendly. This collaboration will ensure a fair and transparent tax system that benefits all sectors of society.
“The efforts of those who pay their taxes should be acknowledged and celebrated. By rewarding them, we can foster a culture of voluntary compliance, which is essential for the stability and growth of Pakistan’s economy”, they added.
The LCCI leadership also highlighted the need for reform in several areas within the tax system. They said that the tax filing process should be streamlined to make it easier for businesses to comply. The technology should be used to to simplify tax payments and make the system more transparent. They said that the government should launch awareness campaigns to inform the public about the benefits of tax compliance and its role in national development.
They said that the Lahore Chamber of Commerce and Industry is ready work closely with the government to establish a fair and effective tax system that benefits both businesses and the broader economy. The Chamber reiterated its support for the government’s efforts to tackle tax evasion and called for swift action on its promises.
The LCCI leadership expressed the optimism that a transparent, fair and equitable tax system will emerge from these reforms, promoting economic growth, stability and prosperity for Pakistan.
