KARACHI: Atif Ikram Sheikh, President FPCCI, has made it clear that the business community is against any plans of high-handed approach to enhance tax collection.
FPCCI has, time and again, stressed in no uncertain terms that the only way effectively increase tax collection is through a meaningful consultative process with the stakeholders – that is business, industry and trade community, he added.
Atif Ikram Sheikh reiterated FPCCI’s stance that FBR’s revised tax collection target of Rs12.91 trillion for the fiscal year 2024–25 is not only unrealistic; but, also regressive and anti-business.
Because, in the current state of economy, with no opportunities for businesses to expand, the shortfall in FBR’s tax collection will continue to spiral out of control as July–August 2025 shortfall is Rs99 billion and September 2024 deficit is expected to be between Rs100–150 billion, he added.
President FPCCI elaborated that the ministry of finance and the Federal Board of Revenue (FBR) should study the root causes of missing the tax collection target.
The government needs to take concrete measures for export facilitation; renegotiation of Power Purchase Agreements (PPAs) of Independent Power Producers (IPPs); bring key policy rate in single digit to match prevailing core inflation; rationalize power & gas tariffs and improve law & order in the country.
He highlighted that core inflation is expected to be around 8 percent in September 2024; while policy rate is 17.5 percent.
This much premium makes no economic or business sense. Interest rate has to be in the single digit to curtail cost of doing business and make access to finance possible. Why cannot we have proactive and pro-growth monetary policy, he questioned.
Atif Ikram Sheikh maintained that FPCCI has always supported broadening of the tax-base through simplification of the taxation system – not through continuing with maladministration or lack of consultation. Micro, Small and Medium (MSMEs) need special governmental support to be brought into tax-net through incentivization and enabling their growth.
Saquib Fayyaz Magoon, SVP FPCCI, explained that federation, being the apex body, is all-willing to facilitate the consultative process between government and all sectors of the economy. However, it cannot support measures that disincentivize being part of the system; rather than making it advantageous for the businesses to be in the tax-net, he added.
Copyright Business Recorder, 2024