The government's decision to broaden the tax net to increase revenue generation and ease the burden on the already taxed, at a time when Pakistan is faced with an acute shortage of resources is welcomed and fully supported by the Overseas Investors Chamber of Commerce and Industry (OICCI).
The OICCI supports the move by the government to bring sectors such as real estate, services, agriculture and bourses into the tax net. These measures, if adopted, will help bolster investor morale, increase foreign direct investment (FDI) in Pakistan and provide more resources for development without having to resort to external borrowing and aid.
As outlined in the OICCI budget proposals, shared with the government earlier, there is an urgent need to expand the tax base to reduce the burden on the taxpaying section, which is currently represented by a shrinking minority. OICCI had proposed mandatory documentation of all sectors of the economy and to gradually bring them in the tax net. The announcement that has come is a step in the right direction.
The long-term benefits of such a measure will undoubtedly assist in expanding the tax base and OICCI wholeheartedly supports the government in initiatives that will lead to mutual benefit of investors and the country. This is in line with the OICCI recommendation that an effective tax system can only work where there are identical tax procedures and processes for the same kind or nature of business activities. Furthermore, there has to be no discrimination in incidence of tax in one sector over the other.-PR
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