The government could earn more revenue from income tax on rental income by adopting a uniform rate of 10%, suggested Zakaria Usman, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
In a statement, Usman demanded that the different slabs introduced in the budget for 2013-14 should be abolished as putting taxpayers in such slabs made the calculations and the overall system complex.
Also, the slabs have opened a window for mis-declaration of income, corruption and tax evasion. According to Usman, the landlords keep the receipts to conceal the actual rental income in a bid to avoid payment of income tax according to the applicable slab.
