Syed Mazhar Ali Nasir calls for urgent tax reforms in Pakistan to relieve taxpayers and stabilize the economy.
- Pakistan’s Economic Challenges Demand Immediate Tax Reform
- Expanding the Tax Net to Relieve Existing Taxpayers
- Lowering Energy Costs to Support Businesses
- Reducing Discretionary Powers to Combat Corruption
- Mazhar Ali Nasir’s Vision for Economic Stability in Pakistan
Syed Mazhar Ali Nasir, former Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Vice Chairman of the United Business Group (UBG) Sindh Region, has called for sweeping tax reforms to expand Pakistan’s tax net and reduce the burden on current taxpayers. Highlighting the country’s economic challenges, Nasir emphasized that a comprehensive shift in tax policy is essential to tackle Pakistan’s soaring inflation, which has surged by 60% in just over two years.
Nasir pointed out that the current economic landscape, marked by high inflation, declining business activities, and a shrinking tax base, has put immense pressure on Pakistan’s existing taxpayers. The Federal Board of Revenue (FBR) faces a tax revenue shortfall of over PKR 180 billion in the first four months of the fiscal year, signaling an urgent need for policy adjustments. Nasir stressed that ongoing policy weaknesses have led to excessive profits in certain protected sectors, fueling corruption, promoting illegal trade, and triggering a concerning brain drain from Pakistan.
To address these challenges, Nasir proposed critical tax reform measures, urging the government to:
- Expand the Tax Net: Add new taxpayers instead of increasing taxes on the current taxpayer base, to broaden the revenue sources and lessen the burden on small businesses and individual taxpayers.
- Reduce Energy Costs: Introduce relief in electricity and gas tariffs by reducing rates by PKR 12 per unit across all consumer categories, ensuring a consistent, uninterrupted power supply. Nasir suggested that implementing a “take-and-pay” policy could further stabilize electricity tariffs and support struggling industries.
- Strengthen Oversight and Reduce Corruption: Rectify policies that enable abnormal profits and foster unlawful trade. Nasir also called for the withdrawal of discretionary powers held by Inland Revenue (IR) officials at the FBR, advocating for transparency and minimizing opportunities for corruption.
Nasir’s proposals come at a critical time for Pakistan’s economy, with the goal of fostering a fairer tax system and reducing inflationary pressures on businesses and individuals.