Dr. Mirza Ikhtiar Baig (MNA):The incumbent government is taking several measures to expand the tax net by bringing the sectors into the tax net which are still lying out. In this regard, Prime Minister, Finance Minister and Chairman Federal Board of Revenue have held detailed meetings to bring three major sectors of economy namely real state, retail and agricultural into the tax net. We have also discussed in detail the measures to bring these sectors in the tax net at the forum of National Assembly Standing Committee on Finance and Revenue. We have proposed a number of amendments from this forum. Now anyone will have to declare the source of money prior to purchasing any real state. Even the filers will also disclose the source of money in this regard. Currently, retailors are out of tax net so the government is making bids to bring them in the tax net. FBR is working on amendments to stop tax evasion by retailers, real state and agriculture sectors. Even for filer FBR is making strict to buy real state. Prime Minister, Finance Minister and Chairman FBR have admitted that salaried class is over burdened with taxes as tax share by salaried class makes up almost 60 to 70 per cent of total revenue collection. Smuggling is also hurting tax collection especially smuggling of furnace oil and diesel through Iran border is hampering the tax collection.

Dr. Khaqan Najeeb (Economist):Tax to GDP was nine to ten per cent in the past, but it is very high and not a good sign for economy. Volume of retail sector is almost 19% of total economy, but it pays only one per cent tax. Retailor, realtors, agricultural sectors need to be brought in tax net as these sector enjoy low taxes at the cost of higher tax rates on manufacturing and salaried class. These sectors must be brought in the tax net. Tax rates on manufacturing and salaried class needs to be reduced. We may move towards cashless economy by promoting online payment modes. It may take some time. E-commerce and people earning from IT services have less tax rates and exporters are also misusing this channel. The government needs to look on this area and find out misuse of this channel. We have incentivized IT related services but misuse of this sector has to be looked into. The state has not come hard on sectors lying out of tax net. People are out of tax net are enjoying tax evasion and making money at the cost of taxpayers.