AIRLINK 189.36 Increased By ▲ 1.33 (0.71%)
BOP 11.10 Decreased By ▼ -0.76 (-6.41%)
CNERGY 7.28 Decreased By ▼ -0.26 (-3.45%)
FCCL 36.65 Decreased By ▼ -1.14 (-3.02%)
FFL 14.95 Decreased By ▼ -0.29 (-1.9%)
FLYNG 26.19 Increased By ▲ 0.66 (2.59%)
HUBC 130.89 Increased By ▲ 0.74 (0.57%)
HUMNL 13.47 Decreased By ▼ -0.14 (-1.03%)
KEL 4.28 Decreased By ▼ -0.07 (-1.61%)
KOSM 6.08 Decreased By ▼ -0.09 (-1.46%)
MLCF 45.94 Increased By ▲ 0.26 (0.57%)
OGDC 201.86 Decreased By ▼ -4.57 (-2.21%)
PACE 6.12 Decreased By ▼ -0.26 (-4.08%)
PAEL 38.36 Decreased By ▼ -1.95 (-4.84%)
PIAHCLA 16.73 Decreased By ▼ -0.22 (-1.3%)
PIBTL 7.94 Decreased By ▼ -0.09 (-1.12%)
POWER 9.86 Decreased By ▼ -0.17 (-1.69%)
PPL 173.46 Decreased By ▼ -5.38 (-3.01%)
PRL 34.73 Decreased By ▼ -1.63 (-4.48%)
PTC 23.95 Decreased By ▼ -0.44 (-1.8%)
SEARL 101.74 Decreased By ▼ -1.42 (-1.38%)
SILK 1.07 No Change ▼ 0.00 (0%)
SSGC 32.70 Decreased By ▼ -3.54 (-9.77%)
SYM 17.93 Decreased By ▼ -0.30 (-1.65%)
TELE 8.14 Decreased By ▼ -0.24 (-2.86%)
TPLP 12.02 Decreased By ▼ -0.14 (-1.15%)
TRG 67.40 Increased By ▲ 0.07 (0.1%)
WAVESAPP 11.80 Decreased By ▼ -0.21 (-1.75%)
WTL 1.52 Decreased By ▼ -0.05 (-3.18%)
YOUW 3.90 Increased By ▲ 0.01 (0.26%)
BR100 11,819 Decreased By -87.9 (-0.74%)
BR30 35,000 Decreased By -554.1 (-1.56%)
KSE100 112,085 Decreased By -478.8 (-0.43%)
KSE30 34,946 Decreased By -148 (-0.42%)

KARACHI: Atif Ikram Sheikh, President FPCCI, has emphasized that, while FPCCI supports the efforts to increase tax-to-GDP ratio, it has to be achieved through broadening of tax base and simplification of the taxation system – rather than further squeezing the already taxed.

The only pragmatic approach to achieve tax-to-GDP ratio of 15 percent in the next 5 years is to add 1.5 to 2 million new taxpayers in the tax-net, he added.

He maintained that the tax and FBR reforms should not be attempted without consultation as these kinds of efforts have been grossly unsuccessful multiple times in the past; and, the successive governments resorted to the regressive and anti-business measures of further increasing the taxes on existing filers.

Atif Ikram Sheikh stressed a three-pronged strategy to broaden the tax base: (i) end-to-end digitalization of the taxation system to bring transparency & fairness (ii) FBR reforms in consultation with the business community in light of the ground realities (iii) an end to maladministration & harassment of trade & industry at the hands of taxation machinery.

FPCCI Chief stated that the business, industry and trade community understands the need for the country to enter into a new, expanded and longer-term IMF programme; which will entail, as per past practice, imposition of more taxes – however, FPCCI wants to make it clear that last few years have been unprecedentedly difficult for trade and industry due to COVID-19, floods, cost of doing business, exchange rate volatility; and, incremental rounds of increase in electricity, gas and petroleum prices.

Atif Ikram Sheikh apprised that the core inflation has come down to 12.8 percent and headline inflation recorded at 20.7 percent in the month of March 2024; which is the lowest in 22 months; and, the trajectory is categorically showing a downward trend for the months to come.

Therefore, it becomes imperative to reduce the key policy rate at the earliest; and, a regionally-competitive Export Finance Scheme (EFS) and Long-Term Financing Facility (LTFF) should be offered to exporters, he added.

Copyright Business Recorder, 2024

Comments

Comments are closed.