The Overseas Investors Chamber of Commerce and Industry (OICCI) has recommended to Sindh government to merge and bring all revenue collections under one ministry/body in the province as by doing so the government will add to the EODB (Ease of Doing Business). Moreover, the consolidation of taxes will make compliance easy for tax-payers, it added. The OICCI also urged the Sindh government to set up tax-free zones in the province to attract Foreign Direct Investment (FDI).
Pointing out that revenue collections in Sindh, at present, fall under Ministry of Finance, Sindh Board of Revenue, and Ministry of Excise and Taxation, the chamber said that its members have expressed concern at various forums, over the last few years, that the cost of doing business in Sindh was very high on account of various levies, taxes and other costs. Besides, very high expenses being incurred on security-related matters over the past few years due to law and order situation in the province has added to the cost of doing business and it was a matter of concern for investors.
Though the availability of a relatively better infrastructure, with port facilities, was a major reason which attracted investors to the province, the current energy crisis and steep rise in energy cost, combined with the various levies, has considerably dampened investors' motivation.
Pointing out that currently a number of taxes and levies, including sales tax on services, stamp duty, Sindh development & maintenance of infrastructure, market fee, professional fee, were being collected by the provincial government, the OICCI said that these taxes and levies are not only adding to the cost of doing business in Sindh, but also having its impact on the decisions of new investors. Underscoring the need for harmonizing taxes levied in Sindh with the taxes of other provinces of the country, the OICCI said:" When implementation of policies is not in accordance with proper and correct policy interpretation, it gives rise to litigation, which is neither beneficial to taxpayer nor for the collector."
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