KARACHI: Pakistan Tax Bar Association (PTBA), a representative body of 30 Tax Bars of the country, on Thursday has urged the Minister for Finance, Revenue and Economic Affairs, Asad Umar, to form Policy Board on Tax Revenues and National Tax Authority. In a letter sent to the minister, the apex tax body said necessary structural reforms should be brought in Federal Board of Revenue (FBR) in order to make it efficient, effective, and most modern, transparent, business friendly with an ability to bring change. It is high time that a “Policy Board On Tax Revenues” be formed under your Chairmanship comprising of economists, representatives of professional bodies (Tax & Accounting), State Bank of Pakistan, Securities and Exchange Commission of Pakistan (SECP), Ministry of Finance and FBR. President KTBA, Abdul Qadir Memon said the policy should not be just about producing a competitive tax environment, but also to create a fair tax system; one that takes account of the ability to pay, simplifies tax laws, encourages high rates of compliance, facilitates the existing taxpayers and operates with low administrative & compliance cost. ‘There is much to be done for rapid growth of SME Sector and others by reducing cost of doing business as well as compliance & litigation and gradual reduction of indirect taxation’. The existing taxpayers and major contributors of tax revenues have shouldered unprecedented financial burden. It is therefore imperative that such existing taxpayers must feel that in”Naya Pakitan”, they will be given a fair and judicious deal on taxation. The due tax refunds will be paid to them within a reasonable time frame, he added. Memon further said FBR and SECP should be depoliticized and allowed to work independently. ‘There is a serious lack of harmonization of federal & provincial taxes and lnter-provincial taxes, which has resulted in growing disputes and litigation. Government is required to put in place adequate procedural formula to ensure that double or multiple -taxation should not result from operating in different provinces under varying provincial and federal sales tax laws on services’ Memon also suggested that federal government should form “National Tax Authority” for harmonization of tax laws, rules and regulations. In order to make Pakistan an attractive and viable destination for local and global investment, positive steps should be taken to reduce commercial disputes and encourage effective local/international dispute resolution mechanisms to handle the inevitable friction that may arise in the interaction with national tax system, added Memon. Published in Daily Times, August 31st 2018.