Karachi: On behalf of the entire business, industry and trade community of Pakistan, Mr. Atif Ikram Sheikh, President FPCCI, has demanded that the government should withdraw harsh and anti-business taxation measures from the Finance Bill before it is passed through the parliament. What the country needs is a pro-business, investment-friendly and growth-oriented fiscal policy framework as the economy has stabilized and poised for growth, he added.
Mr. Atif Ikram Sheikh maintained that the tax collection target can only be achieved if industrialists and exporters are taken onboard through a comprehensive consultative process. However, he lamented, budget misses the measures needed to enable the business community to materialize the vision of PM to achieve export-led growth.
Mr. Atif Ikram Sheikh maintained that sweeping discretionary authorities given to the taxmen would be detrimental to business and investor confidence in the country – and, will give rise to harassment, corruption and maladministration.
FPCCI Chief elaborated that it is an established fact and practice globally that the more a tax collector is allowed to intervene or interact with the taxpayer, the more it is likely to undermine the principles of fairness, transparency and impartiality due to increased role of human-to-human interaction and human judgement becomes a nuisance. Therefore, we do not need to reinvent the wheel in this matter, he added.
Mr. Atif Ikram Sheikh appreciated the reduction in super tax; downward rationalization of tax slabs for salaried individuals; simplification of income tax return form for salaried class and SMEs – as it was one of FPCCI’s longstanding demands – and the much needed increase in the defense spending to ensure geoeconomic, trade routes, supply lines and geostrategic security and integrity of the country.
Mr. Saquib Fayyaz Magoon, SVP FPCCI, demanded that fixed tax regime (FTR) should be restored for exporters in its original form and shape for a long-term duration to bring clarity, certainty and consistency in the taxation policies. We can only attract FDI and domestic investment, if we remain competitive as a country, he added.
Mr. Saquib Fayyaz Magoon highlighted that instead of broadening Export Facilitation Scheme (EFS) through including local manufacturers in its scope – in line with the aggregated feedback of the all sectors and industries through the apex trade bodies’ platform of FPCCI – the government has imposed 18% sales tax on raw materials; which will result in increased cost of production; supply line disruptions and lack of competitiveness in the regional and international markets for Pakistani products.
SVP FPCCI also expressed his resentment that FPCCI’s recommendation to bring special incentives packages for the IT & ITeS; Mines & Minerals and Fishing industries in the Federal Budget 2025 – 26 has been ignored. These are high-growth areas and can grow exponentially, he added.
