ICCI demands business friendly tax environment to improve tax revenue
- April 12, 2022
The incumbent government should focus on taking strong measures to create a business friendly tax environment in the country as the policy of excessive tax demands, unnecessary notices to taxpayers and recovery proceedings have failed to increase tax revenue. This was said by Muhammad Shakeel Munir, President, Islamabad Chamber of Commerce & Industry (ICCI) while talking to members of business community at Chamber House. Jamshaid Akhtar Sheikh Senior Vice President, Baser Daud former President, Muhammad Naveed Malik former Senior Vice President, Ashfaq Hussain Chatha former Vice President ICCI and Raja Safeer were present at the occasion. Muhammad Shakeel Munir said that the coercive tax measures and imposition of high tax rates have always promoted tax evasion and it was high time that the new government should focus on reducing high tax rates in the forthcoming budget that would encourage voluntary tax compliance and expand tax base. He said the approach of over enforcement has always created an environment of fear and harassment in the business community and this approach should be changed towards promoting a culture of voluntary tax compliance that would be more effective in increasing tax collection. He said that the government should consider offering some good tax incentives in the upcoming budget to the business community in order to boost their confidence and accelerate the pace of business activities in the country. He also stressed necessary reforms in the tax system as over 52 percent tax collection was made from the import stage, which was not a wise approach. Jamshaid Akhtar Sheikh Senior Vice President and Muhammad Faheem Khan Vice President ICCI said that Pakistan needed to promote industrialization in order to create new jobs for youth, improve exports and enhance tax collection. To achieve this goal, it was necessary that the government in the forthcoming budget should reduce customs duties and taxes on the import of industrial machinery and technology. They said that a cut in import duty on machinery and technology would also help in upgrading the industries to produce value added products that would make significant increase in exports.