Traders seek business friendly environment

The key focus of the incumbent government should be to take strong measures aimed at creating a business friendly tax environment in the country, said Islamabad Chamber of Commerce and Industry (ICCI) President Muhammad Shakeel Munir.

Speaking to the business community at the Islamabad Chamber of Commerce and Industry on Tuesday, he highlighted that the policy of excessive tax demands, unnecessary notices to taxpayers and recovery proceedings had failed to increase tax revenue

“The coercive tax measures and imposition of high tax rates have always promoted tax evasion and it is high time that the government pays attention towards reducing high tax rates in the forthcoming budget,” said Munir. “This will encourage voluntary tax compliance and expand tax base.”

He highlighted that over enforcement of laws and regulations always sparked an environment of fear and harassment for the business community.

“This approach should be changed to promotion of culture of voluntary tax compliance which would prove highly effective in increasing tax collection,” he said.

He further stressed that the government should consider offering good tax incentives in the upcoming budget to the business community in a bid to boost its confidence and accelerate pace of business activities in the country.

He called for introducing necessary reforms in the tax system, citing that over 52% of tax collection was attained in the import stage, which was not a wise approach.

ICCI Senior Vice President Jamshaid Akhtar Sheikh and Vice President Muhammad Faheem Khan said that Pakistan needed to promote industrialisation in order to create new jobs for youth, improve exports and enhance tax collection.

 “To achieve this goal, the government must reduce customs duty and taxes on import of industrial machinery and technology in the forthcoming budget,” they said.

They further suggested slashing import duty on machinery and technology and added that it would help industries to upgrade and produce value-added products which would trigger significant increase in exports.

Former ICCI president Baser Daud former President, former senior vice president Muhammad Naveed Malik, former vice president ICCI Ashfaq Hussain Chatha and Raja Safeer were also present at the occasion.

Published in The Express Tribune, April 13^th, 2022.

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