KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has warmly welcomed the government’s decision to separate tax policy from the Federal Board of Revenue (FBR).
This reform is seen as a critical step toward enhancing transparency, improving efficiency, and fostering economic growth.
In an official statement, FPCCI President Atif Ikram Sheikh praised the establishment of the National Tax Policy Unit, calling it a significant move in the national interest. He highlighted that the separation of tax policy formulation from tax collection is crucial for ensuring a more transparent and effective tax system.
The FPCCI chief stressed that the dual role of the FBR in both policy-making and tax collection has, in the past, created loopholes that increased opportunities for corruption and tax evasion. “When the same entity is responsible for collecting taxes and setting tax policies, it leads to conflicts of interest and inefficiencies,” Sheikh remarked.
He emphasized that the business community has long advocated for this separation to build trust and improve compliance.
According to the FPCCI, the formation of an independent National Tax Policy Unit will not only improve governance but also help broaden the tax base. Atif Ikram Sheikh noted that the simplified tax system would encourage more businesses to enter the formal economy, ultimately increasing the country’s revenue without imposing additional burdens on existing taxpayers.
“Expanding the tax base and simplifying the tax framework should remain the cornerstone of these reforms,” the FPCCI president stated. He added that the new policy unit, operating independently from the FBR, would allow the latter to focus entirely on efficient tax collection and enforcement.Duty-free shopping
The FPCCI expressed confidence that with the Finance Minister overseeing the National Tax Policy Unit, Pakistan would witness improved tax compliance and a more equitable distribution of the tax burden. The organization reiterated its commitment to supporting the government in implementing these reforms and contributing to the country’s economic stability.
In conclusion, the FPCCI called on the authorities to ensure the smooth execution of the reforms, emphasizing the importance of ongoing dialogue between policymakers and the business community to address concerns and optimize outcomes for the national economy.
