{"id":6478,"date":"2019-05-09T10:28:06","date_gmt":"2019-05-09T10:28:06","guid":{"rendered":"https:\/\/www.digitaldips.pk\/?p=6478"},"modified":"2019-05-09T10:39:08","modified_gmt":"2019-05-09T10:39:08","slug":"corporate-tax-should-be-brought-down-to-20","status":"publish","type":"post","link":"https:\/\/www.digitaldips.pk\/index.php\/2019\/05\/09\/corporate-tax-should-be-brought-down-to-20\/","title":{"rendered":"Corporate tax should be brought down to 20%"},"content":{"rendered":"\n<p>Corporate tax should be brought down to 20% immediately; Federal and Provincial GST should be unified and reduced to single digit in next three years <\/p>\n\n\n\n<p>\u201cAn inclusive economic growth model: ACCA\u2019s Budget\nProposals for 2019\/20\u201d<\/p>\n\n\n\n<p>ACCA (the \u201cAssociation of Chartered Certified Accountants\u201d) believes\nthat it is time to make radical changes in the approach towards budget and the\neconomic model of Pakistan. <\/p>\n\n\n\n<p>We are compelled to think beyond twelve months and take medium to long\nterm perspective focusing on inclusive economic growth and development model\nfor Pakistan rather than just managing cash flows and foreign-exchange\nreserves. <\/p>\n\n\n\n<p>Budget 2019\/20 should be based on \u2018low-tax-rate\u2019 and\n\u2018broadening-the-tax-base\u2019 philosophy; aiming for GDP growth rate of 7% and\nimprovement in human development index from current level of 0.562 (150\nranking) to 0.800 (&lt;60 ranking) in next 3-5 years. <\/p>\n\n\n\n<p>The policy focus should be more on increasing the size of the documented\nGDP from ~USD 315 billion (2018) to over USD 1 Trillion, alongside increasing\nthe Tax-to-GDP ratio based on current size of the documented economy. <\/p>\n\n\n\n<p>The key drivers for the aspired economic growth and human development:<\/p>\n\n\n\n<ul><li>Harnessing the fourth\nindustrial revolution using new technologies to drive future-proof economic\ngrowth and participate in global GDP<\/li><\/ul>\n\n\n\n<ul><li>Inclusion of local\nSME\/start-ups sector in public spending to the tune of 10% -15%<\/li><\/ul>\n\n\n\n<ul><li>Supporting micro and\nsmall industries in underdeveloped regions <\/li><\/ul>\n\n\n\n<ul><li>Incentivising\ndomestic investor for import substitution<\/li><\/ul>\n\n\n\n<ul><li>Encouraging export of\nservices and human resources<\/li><\/ul>\n\n\n\n<ul><li>Focusing on public\nprivate partnership to introduce outcome driven citizen service models for\neducation &amp; health sector<\/li><\/ul>\n\n\n\n<ul><li>Devising a national\nhuman resource development strategy driven by domestic and global demands<\/li><\/ul>\n\n\n\n<ul><li>Ensuring transparent\nand timely reporting of public spending<\/li><\/ul>\n\n\n\n<ul><li>Capacity building of\ngovernment functions<\/li><\/ul>\n\n\n\n<ul><li>Rationalizing the\nsize of the government<\/li><\/ul>\n\n\n\n<ul><li>Building a political\nconsensus on the charter of economy <\/li><\/ul>\n\n\n\n<p>In the context of the 18th amendment, Prime Minister Office may need to\ndrive progress through coordination committees with representatives from\nfederal &amp; provincial governments and key experts from industry\/academia. To\nmake them effective, the size of each committee should not exceed 10-12 members\nwho should be obliged to provide decisions within stipulated timeframe.&nbsp;&nbsp;&nbsp; <\/p>\n\n\n\n<p>Key highlights of budget proposals by ACCA are:<\/p>\n\n\n\n<p>\u2022&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The right to use\ninformation available with financial sector and revenue collection authorities\nshould be allowed to broaden the tax base. <\/p>\n\n\n\n<p>\u2022&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reduce the corporate\ntax rate to 20% and individual highest slab to 25%.<\/p>\n\n\n\n<p>\u2022&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Single and simple tax\ncollection system for federal and provincial sales taxes.<\/p>\n\n\n\n<p>\u2022&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The sales tax rate\nshould be reduced to a single digit in the next 3 years starting with 14% in\n2019\/20. <\/p>\n\n\n\n<p>\u2022&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Punitive measures\nshould be introduced making non-compliance by businesses commercially\nnon-viable. <\/p>\n\n\n\n<p>Furthermore, the proposals recommend that the reliance should be on\ndirect taxes including taxation on agriculture sector, inter-corporate\ndividends should be exempt, evidence of source should be made mandatory for\nforeign remittances, discretionary power to attach a bank account for recovery\nshould be abolished or revisited, and services should not be subject to minimum\ntax.&nbsp;&nbsp;&nbsp;&nbsp; <\/p>\n\n\n\n<p>In order to broaden the tax base, increase the involvement of\nprofessional accountants to build on-ground infrastructure to facilitate\nbusinesses and tax compliances.<\/p>\n\n\n\n<p>ACCA members in Pakistan and abroad are regulated under a single code of\nethics and conduct. ACCA believes that the professional accountants in general\nand ACCA members in particular are there to uphold the public trust and to bring\nthe global best practices to drive the economic growth and development, boost\nbusiness confidence and propel right behaviours for tax compliance. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Corporate tax should be brought down to 20% immediately; Federal and Provincial GST should be unified and reduced to single digit in next three years \u201cAn inclusive economic growth model: ACCA\u2019s Budget Proposals for&#46;&#46;&#46;<\/p>\n","protected":false},"author":6,"featured_media":6480,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"image","meta":{"_mi_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[186,1],"tags":[1730,755],"acf":[],"_links":{"self":[{"href":"https:\/\/www.digitaldips.pk\/index.php\/wp-json\/wp\/v2\/posts\/6478"}],"collection":[{"href":"https:\/\/www.digitaldips.pk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.digitaldips.pk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.digitaldips.pk\/index.php\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.digitaldips.pk\/index.php\/wp-json\/wp\/v2\/comments?post=6478"}],"version-history":[{"count":1,"href":"https:\/\/www.digitaldips.pk\/index.php\/wp-json\/wp\/v2\/posts\/6478\/revisions"}],"predecessor-version":[{"id":6479,"href":"https:\/\/www.digitaldips.pk\/index.php\/wp-json\/wp\/v2\/posts\/6478\/revisions\/6479"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.digitaldips.pk\/index.php\/wp-json\/wp\/v2\/media\/6480"}],"wp:attachment":[{"href":"https:\/\/www.digitaldips.pk\/index.php\/wp-json\/wp\/v2\/media?parent=6478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.digitaldips.pk\/index.php\/wp-json\/wp\/v2\/categories?post=6478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.digitaldips.pk\/index.php\/wp-json\/wp\/v2\/tags?post=6478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}