Observer Report Islamabad
The Overseas Investors Chamber of Commerce and Industry (OICCI) submitted comprehensive Taxation Proposals for the Federal Budget 2021-22 which highlight various measures required to streamline the complex tax regime, incentivize the legitimate tax payer through Ease of Doing Business measures and ensure filing of tax returns by all income earners.
Commenting on the Taxation proposals, Irfan Siddiqui, OICCI President, acknowledged that “ GoP has taken various bold measures in the face of many economic challenges, including those emanating from the Covid 19 impact on the local and international trade and business.”
Mr Irfan Siddiqui added “ OICCI members are fully conscious that the continuing spread of Covid-19 poses exceptional challenges to the government and have therefore decided not to seek a number of taxation relief measures which, under normal circumstances, would have been justified to boost FDI and align Pakistan to compete with other regional countries”.
OICCI has strongly recommended that the Minimum Tax regime should be rationalized with a lower level general tax rate and immediately reduced to 0.2% for certain industries, like oil refining and oil marketing companies, with high turnover and low/government regulated margins.
Moreover, Withholding tax regime (WHT) with over 45 rates is cumbersome and needs to be immediately rationalized to 5 rates for filers.
Final Tax regime should be abolished and all withholding taxes should be made adjustable.
FBR should ensure that all those persons who have been subjected to withholding taxes should file regular tax returns.
OICCI Secretary General , Abdul Aleem , giving further details of the key Taxation proposals from the chamber highlighted the need to introduce one unified Sales Tax rate of 13 %, as applicable in Sindh, and one common tax return form throughout the country.
