Govt seeks suggestions on regulation of taxes to philanthropy

ISLAMABAD: In order to end tax evasion, government seeking suggestions for better regulation of taxation in philanthropic activities.

This was stated by Federal Board of Revenue (FBR) spokesperson Dr Muhammad Iqbal on Monday while addressing a pre-budget seminar hosted by Sustainable Development Policy Institute (SDPI) in Islamabad.

“The FBR is already offering a number of incentives to organisations involved in philanthropic work,” he said. “However, the priority for the government is to invest in the public sector services because leaving it to non-state actors can have unwarranted consequences.”

He added that under the guise of philanthropy, certain organisations promoted extremism in the past, therefore, a foolproof regulation from the government is mandated.

According to sources, in current fiscal year (FY 2016-17) tax collection is reportedly far behind the targets set by the taxation authorities like previous years.

Pakistan listed among one of the top generous nations in the world with many welfare organizations active in the country. According to estimates every year, Pakistan nationals spend over 200 billion rupees in charity. In Ramazan, an Islamic holy month, people donate maximum amounts in charity.

Leave a Comment