The Overseas Investors Chamber of Commerce and Industry (OICCI) has urged Finance Minister Ishaq Dar to review the proposed budget document and make urgent amendments before the enactment of the Finance Act 2015.
In a letter addressed to Dar and copied to the Federal Board of Revenue (FBR) chairman, the OICCI has mentioned that due attention has not been paid to a number of practical proposals given by the chamber, especially in respect of incentives to attract new investments, including foreign direct investment, and for broadening the tax base.
OICCI said that the proposal of tax at 10% on excess reserves of public company under Section 5A of the income tax ordinance 2001 will restrict capital formation for new projects. It will also result in multiple taxation of income as withholding tax rates on dividends have also been increased.
The letter said that the proposed super tax at the rate of 3% on companies and 4% on banks (section 4B) will substantially increase the burden on the existing compliant taxpayers.
Published in The Express Tribune, June 17th, 2015.
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