The American Business Council (ABC) of Pakistan has proposed documenting the country’s economy by emphasizing tax reforms and ease of doing business in the upcoming budget 2024-25.
Tax income should be on profit and not on turnover and with this it has been suggested to restore the confidence of investors and broaden the tax net, Aisha Sarwari, Board of Director of the American Business Council of Pakistan said this while addressing the “Pre- Budget Proposal Seminar” organized by the Ministry of Commerce in Islamabad.
Addressing the seminar, Aisha Sarwari said that ABC members excel in, and contribute to, all sectors of the economy, with a cumulative gross revenue exceeding US$ 600 billion. She said that they employ over 130,000 people directly and more than a million indirectly in Pakistan.
Aisha Sarwari said that, The American Business Council recognizes the commercial impact and economic relevance of its members, and proactively works to facilitate and promote their interests in all matters of trade and investment.
She said the organization is therefore revered as an effective channel for dialogue with the Government of Pakistan.
Sarwari Regular suggestions and input for improvement are provided to the relevant bodies – ministries, regulatory and tax authorities – to ensure that ABC’s suggestions and concerns are incorporated in the annual Federal Budget and Trade Policy.
Board of Directorate of ABC said that illicit trade and smuggling is a huge issue that creates a non level playing field in Pakistan for legitimate businesses.
There are a number of innovative products that are today being smuggled into Pakistan due to high tariffs and this also creates a barrier for legal businesses to legally import and commercialize these products in Pakistan, She added.
Hence we request MOC should look into tariff which should discourage smuggling by making smuggling less lucrative. She said this will have a positive impact on government revenue, improve Pakistan’s rating as a place for doing business and also increase FDI.
She also proposed that consider that MNCs who exist in Pakistan should only be allowed to bring in the brands belonging to them or at least have a NOC from the company before anyone else is allowed to import the product.
The recommendations are crafted to strike a balance between encouraging investment, broadening the tax base, and ensuring fairness within the tax system, she proposed.
