KARACHI - The economic experts and tax consultants have urged the government to reduce the volume and number of indirect taxes and to increase the share of direct taxes by taking more people and sectors in to tax base. It was concluded in a Pre-Budget Seminar 2008, organized by Southern Regional Committee of Institute of Chartered Accountants of Pakistan (ICAP). The Director General of Regional Tax Office (RTO) Karachi, Asrar Rauf, who was the chief guest at the occasion, said in his address that the Federal Board of Revenue is striving to include the unregulated sectors of the economy into the tax base. Quoting the World Bank report on emerging economies, he said that Pakistan is at 76 out of 178 countries those were listed by the WB in the report. While, he added, the China posses the rank of 83 and India of 122. Raouf ruled out the impression that people do not want to pay tax in the country and maintained that the facilitation and proper education could increase the tax base and tax volume. He claimed that the government could bring what he called the 'White Revolution' by promoting dairy farming that could generate near four billion dollar to the national exchequer. The Director, Area Economic Research Center, Dr Shahida Wazarat urged the government to adopt the targeted approach for the promotion of the industries in the country by keeping the ground realities in view. She said that the water availability to the farmers should ensure to strengthen the agriculture sector in the country adding that the government should keep the water and power development project in its priority. She was of the view that the government should avoid building big and controversial dams. She also suggested moving towards the alternate energy sources like wind, solar and bio-fuels. Wazarat also asked government to have research inputs from local academic institutes. Former President ICAP S. M. Shabbar Zaidi in his presentation over reforms in indirect taxes maintained that the indirect taxes directly affecting the prices of products and making the life of common people more difficult. Zaidi was of the view that the government should remove all duties and taxes from energy sector, including fuels, petrol and electricity. He said that the services sector comprises 55 percent of India's total tax volume and said that the sector is almost untouched in Pakistan. He suggested levying transportation, telecommunication and media. Zaidi suggested the reduction in custom duty and various reforms in its administration. He also suggested levying 'regulatory duty' on all items of luxury nature. He said that Rs 625 billion are expected to be collected in terms of indirect taxes during 2007-08 and predicted that around Rs 640 billion would be achievable for tax authorities in next fiscal. Tax consultant Haider Ali Patel presented his proposal over direct taxes. He proposed re-introducing of capital gains on sale of shares and properties and suggested dealing them in short and long term mode of possession. He urged introducing valued customer card for the taxpayers and to award privileges and special treatment to them on its basis in order to promote tax culture in the country. Patel suggested that the Common Tax Identification (CTI) should be introduced for the taxpayers of any category that should be based upon their CNICs.