KARACHI: The Pakistan Tax Bar Association (PTBA) has asked the PTI government to rationalise tax rates and also harmonise federal and provincial taxes.

In a letter to Finance Minister Asad Umar, PTBA President Abdul Qadir Memon stressed the need for reducing cost of doing business as it will speed up industrialisation and broaden tax base. The association also recommended abolition of presumptive, value-addition and fixed tax regimes. It also sought enhancement in the threshold of utility bills for cottage industry.

The bar stated that uniform service tax law may be drafted and agreed upon by allprovincialandfederalgovernments for implementation in their jurisdiction by respective tax authorities. Similarly, uniformed tax return should also be introduced.

It demanded the standard tax rate should be reduced to 15 per cent and gradually to 12.5pc in subsequent five-year term of the government.

The bar wants that Value Added Tax (VAT)laws be based on international best practices and discretionary powers of the tax of ficials be withdrawn. Input tax on building materials should be allowed and only those items be disallowed which are specifically stated under the law. The PTBA also urged the finance minister to simplify tax and administrative laws.-Staff Reporter