Karachi, Pakistan: The Overseas Investors Chamber of Commerce and Industry (OICCI) has strongly criticized the Federal Board of Revenue (FBR), highlighting its role as a significant barrier to foreign direct investment (FDI) in Pakistan.
The OICCI has called for a complete overhaul of the FBR, citing several issues, including:
- Policy Unpredictability: OICCI members have expressed concerns over the frequent changes in tax policies, which creates uncertainty and discourages investment.
- Excessive Tax Burden: The increasing tax burden on the formal sector is hindering business growth and competitiveness.
- Delayed Tax Refunds: The significant backlog of tax refunds is impacting the cash flow of businesses and hindering their operations.
- Regulatory Hurdles: Complex and time-consuming regulatory procedures are further discouraging investment.
To address these issues, the OICCI has proposed the establishment of an independent tax authority, separate from the FBR. This new authority would be responsible for:
- Streamlining Tax Procedures: Simplifying tax laws and regulations.
- Improving Tax Administration: Enhancing efficiency and transparency in tax administration.
- Reducing Tax Evasion: Implementing effective measures to curb tax evasion and avoidance.
- Protecting Investor Rights: Ensuring a fair and equitable tax system.
By implementing these reforms, the government can create a more conducive business environment and attract greater foreign investment. The OICCI’s recommendations provide a roadmap for the government to address the challenges faced by investors and foster economic growth.
