Dr. Nadeemul Haq criticizes reliance on foreign advisors

Pakistan's local experts have put forward a tax reform package aimed at enhancing revenue collection through strategic changes in the tax system. The proposal, designed by a group of renowned economists and tax specialists, seeks to generate an additional Rs1.2 trillion by adjusting income tax rates and eliminating specific exemptions.

Dr. Nadeemul Haq, Vice Chancellor of the Pakistan Institute of Development Economics (PIDE), has criticized the government's reliance on foreign advisors and stressed the importance of tapping into local expertise for effective policy-making.

The suggested reforms focus on simplifying the tax structure by recommending uniform tax rates for all income sources and doing away with exemptions like agricultural income. Moreover, the experts advocate for easing the tax burden on individuals by raising the taxable income threshold and revising tax rates accordingly.

Furthermore, the proposal includes lowering the corporate tax rate, abolishing certain taxes such as deemed rental income tax and super tax, and streamlining the withholding tax system. These changes are anticipated to not only boost revenue for the Federal Board of Revenue (FBR) but also encourage investment and compliance.

The experts also propose eliminating ad-hoc increases in regulatory and custom duties and suggest measures to enhance customs revenue by removing exemptions and concessions. They support the IMF's recommendation to end sales tax exemptions in sectors like education and health.

The local experts' tax reform package offers a holistic approach to enhancing revenue collection, fostering economic growth, and ensuring fairness in the tax system. By leveraging local expertise and implementing these reforms, Pakistan can pave the way for sustainable fiscal progress in the future.