KARACHI: Muhammad Suleman Chawla, Acting President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has apprised that the entire business, industry and trade community of Pakistan is of the view that the Section 7E introduced in Income Tax Ordinance (ITO) 2001 has categorically proven to be not only chaotic for the economic activities but also futile & ineffective, as it has only generated Rs 10 billion in the first year of its implementation.

We have lost much more in investor sentiment of the domestic and overseas Pakistanis alike, as far as real estate sector is concerned, he added.

He pointed out that after Lahore High Court (LHC) judgement, FBR has issued Circular No. 3 of 2023 – 24 dated August 15, 2023, stating that Section 7E will not apply on cases falling under the jurisdiction of LHC, i.e., Punjab.

Suleman Chawla proposed that now is an opportune time to listen to the longstanding concerns of the business community over 7E. He called upon Shamshad Akhtar, caretaker federal minister for finance & revenue, to instruct FBR to withdraw Section 7E for the rest of the country and earn goodwill of the business community.

Abolishment of Section 7E in ITO 2001 would prove to be a tangible confidence building measure for the stakeholders of country’s economy and will impart a sense of being heard by their government, he added.

Copyright Business Recorder, 2023