He was chairing a day-long meeting of Tax Reform Coordination Group (TRCG) held here to review the performance of FBR and it also deliberated on budget proposals.

Dr Shaikh said that the guiding principles of the forthcoming federal budget should be continue with the approach of simplification of taxes,  avoidance of increase in taxes or the rates of taxes, fiscal incentives for growth and generation of investment and employment.

The Group recommended that the tax base be broadened, documentation increased and gradual shift away from presumptive tax regime with increase in rate for presumptive tax regime towards eventual reduction in tax rate under normal tax regime.

TRCG discussed proposed changes in implementation of Capital Gain Tax aimed at simplifying the mechanism, improvement in its enforcement and broadening of the tax base.

The Committee formed an "Implementation Group" consisting of TRCG members, FBR officials and SECP representatives to ensure implementation in line with the law.

Revenue performance of FBR was also reviewed in and Chairman FBR, Mumtaz Haider Rizvi apprised the group of the taxes collected under various heads and administrative measures taken till date and the way forward for the remainder of financial year 2012.

The TRCG was apprised that up to February 22, the collection stood at Rs. 1068 Billion, which is 26 percent higher than the collection of Rs. 847 Billion in the corresponding period of the previous fiscal year.

Deputy Chairman Planning Commission, Dr. Nadeem-ul-haq, Chairman, SECP Muhammad Ali, Tax Reform Core Group Members Abdullah Yusuf, Arshad Zuberi, Shabbar Zaidi, Ashfaq Tola, Ali Jameel Yousuf and Mohammad Arshad Chaudhry attend the meeting.