[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]The Overseas Investors Chamber of Commerce and Industry (OICCI) has requested the government to eliminate the super tax from the FY24 budget.
On Saturday, the OICCI delivered its principal taxing suggestions for the 2018 budget to Finance Minister Ishaq Dar. In a statement, OICCI President Amir Paracha stated that the economy is currently under stress, with GDP growth forecast to be negative to marginally positive in the near term, which, combined with high inflation and interest rates and a rapidly weakening currency, has the potential to significantly reduce the profitability of tax-paying sectors next year.
OICCI has suggested that super tax be abolished for all sectors and that the corporate tax rate be capped at 29 percent, with no future increases in the effective tax rate, which is already higher than regional competitive rates. The suggestions also advocate for the elimination or decrease of minimum taxes, particularly for publicly traded enterprises and companies in regulated industries.
Also Read: Customs Seizes Smuggled Cigarettes Worth Rs. 33.6 Million
OICCI also suggested simplifying the withholding tax structure, which now has 200 separate tax rates for 24 WHT sections, in order to make it more convenient and business-friendly.
It has also emphasised the importance of extending the tax base in order to increase revenue collection based on the proportionate participation of each sector of the economy, particularly trade, services, real estate, and agriculture.
OICCI emphasised that there is enough data in the system to greatly broaden the tax base and stop revenue leakage. According to OICCI, with dedicated efforts to collect income from all sectors of the economy, the tax-to-GDP ratio can be boosted to 16 percent in a few years, up from the current ratio of less than 10%. OICCI has also proposed that at least 30 percent of present Federal Board of Revenue (FBR) resources be assigned to the Broadening of Tax (BTB) unit.
It emphasised enormous excise duty evasion by the tobacco sector, duty-not-paid commodities, and under-invoicing, all of which have a negative impact on tax income. OICCI has advised that import data be made public in order to ensure openness. Furthermore, it has requested that Customs appraisal be performed using the most recent valuation methods, such as online search and matching international and regional pricing, as well as taking local legal brand owners into account.[/vc_column_text][/vc_column][/vc_row]
