Unlocking Economic Potential: FPCCI President's Vision for Fairer Taxes and Business Growth
In a recent statement, Atif Ikram Sheikh, President of FPCCI, emphasized the importance of boosting the tax-to-GDP ratio. He stressed the need to achieve this goal by broadening the tax base and simplifying the tax system, rather than burdening those already paying substantial taxes.
Atif Ikram Sheikh proposed adding 1.5 to 2 million new taxpayers as a practical strategy to achieve a 15% tax-to-GDP ratio within the next five years.
Highlighting the failures of past attempts at tax reforms without consulting stakeholders, Atif Ikram Sheikh called for a three-part plan to enhance the tax base. This includes digitizing the tax system for transparency, incorporating input from business leaders to reform the FBR, and putting an end to harassment of the trade and industry sector.
Acknowledging the need for Pakistan to enter a new IMF program, Atif Ikram Sheikh stressed that increased taxes should not exacerbate the challenges faced by businesses due to COVID-19, natural disasters, and rising utility costs.
Atif Ikram Sheikh also noted a recent decrease in core inflation to 12.8% and an overall inflation rate of 20.7%, the lowest in 22 months. He advocated for a reduction in the key policy rate and called for accessible financing schemes for exporters to maintain competitiveness.