Chairman of the FBR Reforms and Resource Mobilization Committee (RRMC), Ashfaq Tola, along with RRMC Subcommittee members Abdul Qadir Memon, Asif Haroon, and Taha Khan Baqai, visited Overseas Investors Chamber of Commerce and Industry (OICCI) on March 22, 2023, for a joint meeting with CFOs and Tax Managers of OICCI member companies and members of OICCI Taxation Subcommittee. OICCI CE/Secretary General M. Abdul Aleem welcomed the honorable guests.
M Abdul Aleem appreciated the formation of the RRMC sub-groups to address specific implication existing in the tax structure of the country. M. Abdul Aleem shared a brief presentation on the issues and recommendations shared by our members to discuss in the meeting with the RRMC. During his presentation M. AbdulAleem emphasized predictable, transparent, consistent, and long-term policies as key considerations for any prospective investors. Additionally Ease of Doing Business (EODB) and simplification of tax paying processes plays a key role in promotion of FDI. He also highlighted that the government should consider that foreign investors are bringing businesses and generating employment in the country and should be treated fairly. The OICCI recommendations were centered around broader principles including:
- Simplification of legislation
- Income Tax Ordinance
- Sales Tax and Federal Excises Act
- Customs Act
- Broadening of Tax Base (BTB) Measures
- Harmonization of Federal and Provincial tax authorities
- Financial Inclusion and Curbing Parallel Economy
- Digitization and Autonomy
- FBR’S Autonomy
Ashfaq Tola appreciated the comprehensive recommendations shared by OICCI. He assured members of his full support in incorporating the recommendations under his Committee’s Report to broaden the tax base with the help of information technology and not to overburden the compliant tax-paying sectors. He also offered his assistance in addressing the complaints relating to tax harassment.
In the Q & A session, participants requested Ashfaq Tola and his team to address some hardship issues in their report, which included Overburdening of tax complaint sector, Minimum Turnover Tax, Input Adjustment, high tax cost of MNCs, pending sales tax refunds under faster pharma system, IP protection and restoration of zero-rating regime for pharma sector, smuggling and mis-use of Afghan Transit.
Responding to members’ concerns and questions, Chairman RRMC shared that FBR team is actively working to resolve anomalies in the system going forward. He also gave confidence that any gaps left behind in correcting distortions will be managed appropriately.
Concluding the session, CE/Secretary General OICCI informed that OICCI will be soon submitting the comprehensive Taxation proposals for the upcoming fiscal budget with an aim to broaden the tax base, improve ease of doing business and facilitating business operation in the country.
