Taxpayers alliance demands relief in upcoming budget, urges FBR to rationalise tax rates

WEB DESK: Representatives of the Taxpayers Alliance Pakistan have expressed grave concerns over the upcoming federal budget, urging the government to implement immediate fiscal measures to provide relief to a public already reeling under intense economic strain.

Addressing a press conference following the inaugural Taxpayers Convention in the federal capital which drew around 400 participants from various socio-economic sectors speakers stressed that while paying taxes remains vital for running the state, the current enforcement mechanism is stifling businesses and discouraging civic compliance.

The alliance highlighted that unprecedented global pressures have severely impacted the domestic economy, leaving both corporate entities and ordinary citizens vulnerable.

They argued that while the country cannot function without a robust tax framework, those who contribute to the national exchequer must be given due importance and social respect, rather than being subjected to administrative alienation.

‘Stifling business environment’

The representatives voiced deep frustration over the constant influx of notices issued by the Federal Board of Revenue (FBR), stating that these bureaucratic measures have created an atmosphere of fear and made it exceedingly difficult for individuals and enterprises to conduct routine business operations. They pointed out an inherent flaw in the current strategy: despite the heavy-handed issuance of regulatory notices, the FBR has failed to successfully expand the country’s tax base or increase the net number of active taxpayers.

The convention particularly criticised the exorbitant 42 per cent tax rate imposed on the salaried class and self-employed individuals, describing it as an unsustainable burden that discourages productivity. While acknowledging the foundational principle that all streams of income should legally be subject to taxation, the alliance firmly demanded that the existing tax rates be substantially reduced to equitable levels to allow businesses to breathe.

Calls for structural reform and taxpayer benefits

Central to the alliance’s demands was the principle of reciprocity in state governance. The representatives maintained that if the state imposes taxes, it must return tangible benefits, public services, and standard facilities to the taxpayers in exchange.

They observed that the current fiscal model extracts revenue without providing basic institutional support, healthcare, or infrastructure to the very people funding the national budget.

However, the alliance offered a nuanced view of the revenue authority, noting that it is not entirely the FBR’s fault for the prevailing systemic issues.

They clarified that the bureau merely implements the rigid policies and legislative mandates handed down to them by the political leadership.

The ultimate responsibility, the alliance concluded, rests with the federal government to formulate fair, progressive, and growth-oriented policies in the upcoming budget to rescue the economy from its current quagmire.