Islamabad, Pakistan– The Overseas Investors Chamber of Commerce and Industry (OICCI) has presented a plan on LinkedIn outlining strategies to help the Federal Board of Revenue (FBR) collect up to Rs. 4 trillion in tax revenue during the fiscal year 2024-25.
The OICCI acknowledges that complex tax structures and high tax rates are significant challenges for businesses in Pakistan, hindering investment and tax collection. The plan highlights the informality of the economy, tax administration, and high tax rates as key deterrents for investors. Pro Pakistani
The OICCI’s analysis identifies the current withholding tax regime, with over 200 classifications, as overly complex. They recommend simplifying this system by eliminating unnecessary sections and considering a unified rate structure for active and non-active taxpayers.
Furthermore, the OICCI proposes harmonizing sales tax rates across all jurisdictions and sectors. Additionally, they recommend implementing a single sales tax return for all sectors, similar to the existing system in the telecom industry. Reducing the frequency of tax return filings is also suggested to ease compliance for businesses.
The OICCI emphasizes the importance of digitalization and enhanced FBR research capabilities. By leveraging technology and improving data analysis, the OICCI believes the FBR can identify potential taxpayers and address income discrepancies, potentially unlocking significant revenue streams.
The OICCI’s plan offers valuable insights for the FBR to consider as they strive to improve tax collection and create a more attractive business environment in Pakistan.
