Business community lauds services of Yousaf

[Naveed Yaseen]

KARACHI: Businessmen criticised the government for unceremonious retirement of former Federal Board of Revenue (FBR) Chairman Abdullah Yousaf when he was on a foreign tour.

The fiery views of businessmen came to light at a farewell luncheon meeting hosted in honour of Abdullah Yousaf at the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) here on Saturday.

Yousaf was sacked by the government on July 20 this year when he was on a visit to Russia and was replaced by Ahmed Waqar.

FPCCI members while lauding the services and business-friendly reforms initiated by the former FBR chairman in tax collection system said he restored confidence of taxpayers and changed the mindset of tax officials.

Zubair Tufail, Vice President FPCCI said the services of Yousaf would be remembered in the FBR and termed him a business-friendly chairman of the bureau. He said in his tenure revenue collection crossed the one-trillion-rupee mark from Rs400 billion in 2004-05 and added that he restored confidence of taxpayers.

Tariq Sayeed while condemning this act of government said it was first occasion that FPCCI was holding a ceremony in honour of retired tax official.

“Now businessmen are paying high taxes as compared to the past which is due to the reform process initiated by Abdullah Yousaf,” he said.

He said Yousaf had appointed some professional people in FBR who have been changed and he emphasised the government should make transfer and posting of tax officials on merit.

Amjid Rafi lauded former chairman for his business friendly policies. Shakeel Dangra said reforms policies of former chairman were being reversed in many tax departments. Mansha Churra, Dr Shahzad Arshad, Aziz Rajput, Shabir Ahmed also appreciated his services. S M Munir termed him the best chairman of FBR who initiated reform process in tax collection system.

“If the government gives honour to the business community we will fill their kitty,” S M Munir said.

Yousaf said the reform programme in taxation system must continue for betterment of the economy. Replying to a question he said in total revenue collection the number of indirect taxes was 82 per cent while the direct taxes were only 18 per cent in the decade of nineties and now this proportion of indirect taxes has been reduced to 62 per cent, which should further come down to 50 per cent in coming years. “There is need for consistency in approach and I suggests to the new FBR Chairman to continue reforms efforts,” he underlined and said that two more years were needed to complete the ongoing reform process in tax collection system which he was initiated.

“The economic fundamentals of our country are strong and there is a need to manage them properly,” he asserted and said that currently tax to GDP ratio was only 11 per cent which was the lowest in the region and emphasised it must be expanded to the proportion 15 to 16 per cent of the GDP in next five years.

He said the government and business community would have to look economic issues and challenges in depth as both are two wheels of the economy and they have to pull in the same direction. He said when he was appointed as CBR chairman (now FBR) in 2004 there was a big gap between taxpayers and tax collectors which he tried to bridge this gap by improving relations and bringing transparency in tax collection system.

Yousaf said 60 years back Pakistan was in better position as compared to some other regional countries but other countries progressed consistently and became Asian tigers. He said on completion of his services in March 2008 he had himself asked the government to relieve him.

http://www.thenews.com.pk/daily_detail.asp?id=129110