The Board of Investment has finalised a plan in collaboration with Federal Board of Revenue to take the issue of corporate tax rate to the Cabinet Committee on Investment (CCoI). This was stated by Investment Division Secretary Mushtaq Malik at a meeting with the representatives of Georgia State University, USA and the World Bank, here on Friday.
Professor Dr Geerten M M Michielse of Georgia State University, USA and Sayem Ali, WB Analyst, Economic Management & Poverty Reduction Unit South Asia, discussed Pakistan's tax system and identified major issues facing foreign investors in Pakistan.
The representatives said there is need to reduce the corporate tax rate, which is presently at 35 percent. The rate is on the higher side, said the representatives.
Mushtaq Malik said Investment Division and BoI intended to take this issue to CCoI so that further action could be taken swiftly. He briefed the delegation about various functions of Investment Division and BoI. He also highlighted various structural reforms Pakistan has taken in 7 years and an overview of the economic indicators showing promising growth and stability.
Professor Geerten said Georgia University and World Bank in collaboration with FBR were conducting research on tax policies in Pakistan. The delegation was informed about the avoidance of double taxation treaties Pakistan has signed with 52 countries.
The secretary said recently Investment Division and BoI held advisory board meetings for all the major sectors, which provide platform for investors to share their problems. He said Pakistan aims to provide a level playing field to all investors. The government has introduced Special Economic Zones to facilitate foreign investors, he added.