KARACHI: The Federal Board of Revenue (FBR) has been suggested to impose higher rates of duties on import of non-essential and luxury items in order to reduce current account deficit.
Association of Chartered Certified Accountants (ACCA) in its tax proposals for budget 2019/2020 said that tangible measures should be taken to reduce the import burden.
“Heavy duties should be levied on all non-essential imports like expensive electronics, cars & luxury items.”
In addition incentives should be announced for local industry to encourage domestic products, it suggested.
In other key reforms, the ACCA said that agricultural sector needs to be re-evaluated.
Being an agricultural country its GDP share must be according to its volume. Currently its share in GDP is 24 percent while it has the potential to reach up to 55 percent.
Large landowners should be taxed at minimal rates i.e. 7 percent with that revenue used to subsidize seeds, fertilizers, water, electricity, fuel, etc. for the small farmers.
Cheap and low quality smuggling and imports from India should be controlled.
The ACCA said that for Pakistan, a country of 220 million people, human capital is a huge resource in new era, but unfortunately due to incompetent and poor policies we are unable to convert this power in to workable force, un-employment has increased to almost 6 percent and over 4 million people are unemployed.
Keeping in view the above indicators the government needs to encourage services sectors, new industries and agriculture.
Banking sector should be used to incentivize and promote a culture of entrepreneurship.
Incentives must be announced for Services sectors particularly Telecom, home based industries, young entrepreneurship programs with special focus on women.