LAHORE: The Progressive Group in the Lahore Chamber of Commerce and Industry (LCCI) has urged the Pakistani government to introduce a “Digital Tax Collection Linkage System” to enhance transparency and accuracy in the national tax collection process. This system would connect all Pakistani citizens through their computerized national identification number (CNIC), broadening the tax base and ensuring that those who can pay taxes are identified while also identifying eligible recipients of funds collected by the Federal Board of Revenue (FBR).
According to Muhammad Ejaz Tanveer, the central leader of the Progressive Group and a member of the LCCI Executive Committee, a digital tax collection system should have access to all relevant data from the FBR, including bank accounts, land records, and vehicle records. This would create a fair and transparent collection system.
Additionally, Tanveer stated that the agricultural sector should not be exempt from taxation, with large landowners being taxed based on their income. He proposed implementing an annual tax on housing and residential plots, exempting plots measuring five marlas. However, plot owners who have possessed their land for the past two years but have not constructed any residential units should be subject to a tax, discouraging unnecessary real estate development.
Tanveer emphasized the importance of consulting with the trade and services sectors before implementing new taxes or increasing existing tax rates, as they play a significant role in revenue generation and job creation for the country.
Taxation is a crucial element in any nation’s economic infrastructure, as it funds government operations and public services. In Pakistan, traditional tax collection methods have faced challenges such as inefficiency, corruption, and limited taxpayer engagement. Introducing a digital tax collection system could address these issues and improve the overall tax collection process in the country.