KARACHI: American Business Council (ABC) President Arshad Husain has urged the government to implement a transparent taxation system, and ensure predictability to spur investment.
He said that with the discount rate standing at a 42-year low of 7%, the government is looking for ways to spur growth, but it has not extended any benefits under Section 65 of the Income Tax Ordinance. He said that imposing one-off taxes such as super tax could potentially create cash management issues for corporations as well as effectively increase the tax burden on existing taxpayers.
Moreover, if listed companies, with reserves in excess of 100% of their paid-up capital, fail to distribute dividends within six months after the end of their income year, they will be taxed at 10% of the entire amount of undistributed reserves.
ABC is one of the largest investor groups in Pakistan with 68 members – most of which represent the Fortune 500 companies.
