ISLAMABAD: Special Adviser to Prime Minister for Revenue Haroon Akhtar has lauded the Overseas Investor Chamber of Commerce and Industry (OICCI) for presenting taxation proposals focusing foreign development investment (FDI) in the country.
In an over two hours interactive session with leading foreign investors in Pakistan, Haroon Akhter highlighted the key achievements of the government since 2013 and mentioned that the good policies of the government has resulted in improvement in the countrys overall security environment, reduction in power and gas load shedding, lowering of inflation, reduction in bank borrowing rates, reduced fiscal deficit, and robust performance of PSE index, besides improvement in international economic ratings of the country.
OICCI President Shahab Rizvi highlighted salient features of the OICCI taxation proposals and recommended that the tax policies need to facilitate rapid economic growth of about 7 % annually, and help attract foreign investment. Shahab Rizvi emphasised on the need to improve policy implementation, especially in taxation matters with the focus on predictability, consistency and transparency in government actions so as to attract new investment in the country.
Presenting the details of OICCI taxation proposals, Secretary General Abdul Aleem referred to some of the specific recommendation including the need to reduce Corporate Income Tax and Sales Tax rates and to bring them in line with regional practices. He also mentioned that lack of effective coordination between federal and provincial revenue and other regulatory authorities has negatively impacted foreign investors.
Commenting on the major points of the OICCI taxation proposals informed that the government was aggressively pursuing initiatives to broaden the tax base and warned the tax evaders of severe punishment. He also referred to the recent Voluntary Tax Compliance Scheme (VTCS) and mentioned that it was part of the tax broadening process. Haroon informed the participants the government was working to increasing the level of FDI into the country.
OICCI President Shahab Rizvi thanked the special adviser for considering all the key points of the OICCI taxation proposals and his promise to review all the recommendations.