Corporate tax: American Business Council seeks cut

ABC of Pakistan proposes reduction in the corporate income tax rate in the upcoming budget for 2011-12.

KARACHI:

The American Business Council (ABC) of Pakistan has proposed reduction in the corporate income tax rate in the upcoming budget for 2011-12.

According to budgetary proposals forwarded to the Ministry of Finance and Federal Board of Revenue (FBR) on Tuesday, ABC made eight tax-related suggestions impacting US companies operating in Pakistan.

ABC observed that with global shift to indirect taxes, average corporate tax rates are coming down. Among 116 countries, the tax rate has fallen from a high of 32.7 per cent in 1999 to 25.5 per cent in 2009.

In order to remain internationally competitive, Pakistan needs to reduce its corporate tax rate to a maximum of 30 per cent in line with regional standards, it suggested.

Published in The Express Tribune, May 25^th, 2011.