Former Senior VP FPCCI underscores need for urgent tax reforms

KARACHI: Syed Mazhar Ali Nasir,former Senior Vice President of the Federation of Chambers of Commerce and Industry (FPCCI) and Vice chairman UBG Sindh Region has stressed the need for comprehensive tax reforms to expand the tax net and alleviate the burden on existing taxpayers.

Nasir emphasized that the current economic situation, marked by a staggering 60% inflation over the past two and a half years, necessitates a shift in tax policy.

Existing taxpayers face immense challenges, with shrinking business activities and heavy inflation. Furthermore, the government faces a significant tax shortfall of over 180 billion in the first four months. Nasir lamented policy weakness has led to abnormal profits for certain protected sectors, encouraging unlawful trade and corruption, and also causing brain drain from Pakistan.

In order to address these challenges Nasir proposed to induct new taxpayers instead of burdening existing ones, introduce relief in electric and gas tariffs, reducing rates by Rs 12 per unit across all consumer categories and ensure its uninterrupted consistent supply, implementing the agreement on a take-and-pay basis to reduce electric tariff and rectify policies that have led to abnormal profits, unlawful trade, and corruption.

Mazhar Nasir also urged the FBR to withdraw discretionary power of IR officials.

Copyright Business Recorder, 2024