KARACHI: Mian Nasser Hyatt Maggo, President of the Federation of Pakistan Chambers of Commerce and Industry, said that tax restrictions and regulations that do not generate any revenue and investment should be removed.
He said that some redundant laws are badly affecting the inflow of investment and ease of doing business. The Foreign Investors are completely aware of doing business in Pakistan, but fears of inconsistency in policies and complicated taxation system deters them.
The President FPCCI stated that various laws and regulations in our economic, trade, finance and taxation systems are either obsolete or complicated that do not help generate revenue but typically result in slow processing and hurting doing business in Pakistan. The comments came while discussing various impediments in the FPCCI Advisory Council on budget, headed by Zakariya Usman (former President FPCCI).
The Advisory Council also discussed the non-availability of the updated list of locally manufactured items which is also an impediment while importing raw materials, parts, machinery, plants etc. Some items are being imported under free or preferential treatment due to FTA/PTAs and, therefore, compete with the local manufacturing. The Advisory Council proposed the National Tariff Commission’s pro-active role to protect local industry through feasible and appropriate protection.
Mian Nasser Hyatt Maggo, President FPCCI, strongly urged to resolve the jurisdiction of sales tax on services by provinces as each province collects it. The reason for low tax collection as a percentage of GDP (tax-to-GDP) is that the Government has not given any workable tax plan; thus, a significant size of the economy is still undocumented. Complexity and complications in the system compel investors to keep away from the existing system.