‘Recent tax shortfall should be addressed without imposing additional burdens’

LAHORE: “In light of the tremendous challenges faced by our citizens, who have endured a staggering 60% inflation over the past 2.5 years, it is essential that we address the recent tax shortfall of over RS 180 billion in the first four months without imposing additional burdens on the common people”.

Nazir Hussain, President Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) stated this during a think tank session held at PCJCCI Secretariat on Friday.

He added that we should advocate meaningful taxation reforms that address policy weaknesses and target the “abnormal profits” of certain protected sectors. By doing so, we can promote a fairer distribution of the tax burden while supporting sustainable economic growth.

Brig Mansoor Saeed Sheikh (Retd), Senior Vice President PCJCCI appreciated the incentive package provided by the prime minister that will provide a “quantum jump” to economic growth and encourage agricultural, industrial and commercial activities through additional consumption at cheaper rates. For commercial consumers, base rates range from Rs 39.53 to Rs 48.78 per unit, while incremental usage will be billed at Rs 26.07 per unit — a discount of 34-47pc.

Zafar Iqbal, Vice President PCJCCI said that industrial consumers, whose rates are between Rs 31.79 and Rs 41.12 per unit, will also pay Rs 26 per unit on additional consumption, leading to savings of 18-37pc. But it should be much appropriate and convenient if they will provide relief in electricity rates, advocating a reduction of Rs 12 per unit across all consumer categories—residential, commercial, industrial, and agricultural—based on total consumption, not merely incremental usage.

Salahuddin Hanif, Secretary General PCJCCI said that this can be achieved by finalising the capacity payment agreement on a take-and-pay basis by December 31, 2024. It will definitely boost the economic growth and encourage agricultural, industrial and commercial activities through additional consumption at cheaper rates.

Copyright Business Recorder, 2024