ISLAMABAD: The federal government’s plan to expend super tax in next budget has been flayed by the foreign investors.
The government is intended to introduce super tax on affluent and rich individuals, association of persons and companies earning income above Rs500 million for next financial year in the budget.
“We have asked the government to withdraw the super tax in the upcoming budget. Otherwise, it should be imposed on permanent base, as foreign investors are annoyed with this tax,” said Overseas Investors Chamber of Commerce and Industry (OICCI) Secretary General Abdul Aleem.
He further said, “The government had asked us in 2015 that super tax would be imposed for one year. However, the government is now expanding it every year, which is not acceptable for the foreign investors.” The OICCI is the collective voice of the top 200 foreign investors from 35 countries, including 50 members associated with Fortune 500 companies.
Aleem said that government should reduce the General Sales Tax (GST) to 13 percent from existing 17 percent, which is higher in the region. Similarly, the government should also revamp Withholding Tax Regime from current 55 rates to just 5 rates. The OICCI also demanded that incentives for new investments should be made part of the budget.
“Tax Policies should ensure a 10 year phasing out period so that local and foreign investors could base their plans on policies which are predictable and consistent over a reasonable time and feedback of the Largest Tax Contributors should be taken before finalisation of the Finance Act,” Aleem said.
Growth in tax collections, over and above the projected growth from the organised sector, should be based on broadening the tax base and bringing new tax payers into the tax net, he added.
OICCI President Khalid Mansoor reiterated the need for a more focused approach to introduce growth oriented economic policies, more aggressive and result oriented taxation and trade policies to boost documentation of the economy, encourage longer term investment by both local and foreign investors, including setting up of export oriented industries, developing an effective private-public partnership forum to help harness the significant potential of the country which has so far remained a dream rather than the reality.
