ISLAMABAD: Admitting that Pakistan is amongst the countries which has the highest tax rates, Minister of State for Finance and Revenue Ali Pervaiz Malik said the government continued to expand the tax base, and will be in the position to reduce the tax rates for the formal sector.
This, he stated, while addressing the Corporate Philanthropy Awards 2024 organised by Pakistan Centre for Philanthropy (PCP), here on Tuesday.
In response to a recommendation made on encouraging the private sector to push on in the philanthropic journey, the minister said he will try to become an advocate for this course and try to provide some tangible incentive because today Pakistan for lack of fiscal space also is amongst those countries, which has the highest tax rates in the world.
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“We continue to expand the tax base, and will definitely be in the position to reduce the tax rates on the formal sector and that is when you can probably infuse that tangible incentive for corporates to push on this agenda as well,” he added.
“As a member of the prime minister’s cabinet, I assure you that the government is also cognizant of the challenges that your businesses are facing in the economic space, whether they be on the taxation front or on the energy front”, said the minister, adding that as the government continues to push on the reforms’ path, more sustainable growth opportunities in Pakistan would be seen.
Early signs of recovery, including much reduced inflation, stable exchange rate, functional supply lines, improved credit ratings, etc, are all evident of journey in right direction.
He said that they gathered to honour the outstanding contributions of corporate sector and to celebrate the shared spirit of generosity and responsibility that lies in the core of the nation’s identity. The PCP deserves all the appreciation for its unwavering commitment to promising philanthropy as a force of positive change, said the minister, adding that this gathering is a testament to the transformative potential of the collaboration between the corporate sector and the civil society.
Malik further said that in today’s rapidly evolving world, the role of corporate philanthropy is more critical than ever. As businesses, you have the unique ability to drive sustainable and inclusive development by leveraging resources, innovation and networks, said the minister, adding that by aligning your philanthropic initiatives with the needs of the communities, you do more than fulfill corporate responsibility. “Your work uplifts lives, strengthens communities and showcases the strength of Pakistani- resilience and generosity at the global stage,” he added.
Zafar A Khan, chairman of PCP Board of Directors reaffirmed the importance of corporate philanthropy in supplementing the government and civil society’s efforts for sustainable development.
He noted that this year’s survey report continues to shed light on the valuable contributions made by the business community towards various social investments in the country.
PCP’s latest corporate philanthropy report reveals that business companies in Pakistan collectively donated Rs23.65 billion for various social causes in 2023, marking a notable increase from Rs16.76 billion in 2022. In recognition of this contribution of the business sector, PCP organised the Corporate Philanthropy Awards 2024.
The award ceremony was also attended among others by Zafar A Khan, chairman PCP Board of Directors, Dr Attiya Inayatullah, chairperson PCP Research Committee, Shazia Maqsood Amjad, executive director of PCP, and representatives from leading corporate firms and civil society organisations.
The PCP’s executive director shared the salient features of the report highlighting that Public Listed Companies (PLCs) contributed the largest share, amounting to Rs17.69 billion, while Public Unlisted Companies (PUCs) and Private Limited Companies (Pv LCs) also significantly contributed PKR 2.60 billion and Rs3.36 billion respectively.
She further highlighted that the corporate sector’s philanthropic support escalated significantly during the 2022 floods, with Bank Alfalah Limited, Mari Petroleum Company Limited, and United Bank Limited standing out as lead contributors donating Rs2,180 million, Rs500 million, and Rs468 million, respectively.
The Minister of State for Finance, Revenue, and Power presented awards to the 18 companies, ranked the highest as per the volume of donation and the percentage of donations relative to Profit Before Tax (PBT).
The award receiving companies included Mari Petroleum Company Ltd; Pakistan Petroleum Ltd; Oil and Gas Development Company Ltd; Sanghar Sugar Mills Ltd; Ghani Value Glass Ltd; Ghani Glass Ltd; Yunus Textile Mills Ltd; YB Pakistan Ltd; Novatex Ltd; Ghani Ceramics Ltd; IJARA Capital Partners Ltd; Green House Ltd; Barrett Hodgson Pakistan (Pvt) Ltd; US Denim Mills (Pvt) Ltd; Diamond Paint Industries (Pvt) Ltd; Al-Riaz Agencies (Pvt) Ltd; and Roomi Enterprises (Pvt) Ltd.
Copyright Business Recorder, 2024
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