Pakistan Tax Bar recommends taxing pensions and lowering GST to 6%

Pakistan Tax Bar Association (PTBA) has recommended a 6% general sales tax (GST) compared to the 18% at present, taxing pensions above PKR 100,000/month at 10%, and implementing a capital gains tax on all property transactions.

PTBA has presented proposals to the FBR to address the nation’s tax inefficiencies and lay the groundwork for a fair and sustainable future.

Under the slogan “Digitalization of the economy is the only way forward to a tax-responsible and sustainable Pakistan,” the PTBA proposed comprehensive measures to broaden the tax base, enhance transparency, and reduce inefficiencies.

They advocated taxing all incomes, including agricultural earnings, and streamlining tax administration using AI and advanced digital solutions.

The association envisioned a tax system where complex documentation and loopholes were replaced by automated, fair, and transparent processes, ensuring every sector contributed its due share.

By leveraging technology for digital invoicing and using NADRA's data integration, the PTBA aimed to tackle under-invoicing, non-reporting, and cash-based economic activities.

A critical part of their proposal emphasized fostering trust between taxpayers and the government. They recommended the establishment of public-private partnerships in education and healthcare, offering tax filers reduced or free access to these essential services.

They also stressed that tax transparency should extend to government officials, advocating for public access to their tax returns and periodic FBR performance reports.

The PTBA’s vision also addressed the broader societal impact of fiscal policies. They highlighted the importance of ensuring that tax revenues were visibly and effectively reinvested in infrastructure, education, and healthcare, creating a tangible link between tax compliance and public welfare.

As the PTBA closed their proposals with an invitation to discuss their ideas further, they symbolized a united effort to transform Pakistan’s economic future.

Their bold initiatives, rooted in digital innovation and equity, aimed to enhance tax collection and foster a culture of accountability, fairness, and shared prosperity across the nation.

The Pakistan Tax Bar Association (PTBA) represents 32 tax bars and over 12,500 professionals.