The Overseas Investors Chamber of Commerce and Industries (OICCI) has submitted an eight-point set of recommendations to the interim finance minister aimed at expanding the tax base. These suggestions include the reintroduction of CNIC requirements for cash transactions exceeding Rs50,000 and the demonetization of Rs5,000 notes.

The OICCI, representing more than 200 multinational corporations, has formally communicated its recommendations in writing to Dr. Shamshad Akhtar, the interim Minister for Finance.

In the correspondence, it emphasised the existence of “quick wins” and highlighted the significant issue of excise duty evasion, which amounts to Rs80 billion within the tobacco industry, along with problems related to duty-not-paid goods and under-invoicing. These practices have a detrimental impact on tax revenues and are particularly prevalent in small areas within the KPK and Azad Kashmir. The OICCI also pointed out that the Track and Trace system, despite much anticipation, has not been effectively implemented, with only two multinational companies (MNCs) holding a 60% market share and contributing 99% of the tobacco tax. (more)