KARACHI: Atif Ikram Sheikh, President FPCCI, has unequivocally stated that FPCCI vociferously opposed any further increase in taxation on already taxed classes or sectors; advanced tax collection; withholding tax (WHT) or any high-handed at source deductions.
The business, industry and trade community has had enough of unfair taxation; and, it has reached a point where it can no longer withstand any additional burden, he added.
He reiterated FPCCI’s stance that what we need in Pakistan is broadening of the tax-base; simplification of tax filing system; taxation reforms which make economic sense and an end to harassment or maladministration in the taxation machinery – not these kind of counterproductive, regressive and contractionary taxation measures.
Sheikh informed that WHT accounts for 70 percent of all the direct taxes collected in sales tax mode in the country as per FY24 data; and, this number is alarming to say the least. On top of that, there are reports that the government may again raise WHT in the country to appease IMF and show a healthy increase in tax collection. This is no good performance; but, a miserable attempt to show progress, he added.
FPCCI president highlighted that the government would have to bring a supplementary finance bill 2025 or a mini-budget in order to implement any increase in WHT. Any mini-budget brings investor’s confidence down; causes flight of capital; closure of industries and fuels mistrust with trading partners of exporters, he stressed.
Copyright Business Recorder, 2024
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