KARACHI: The Pakistan Business Council (PBC) has rebuffed the ‘coercive measures’ and arbitrary inquiries of Federal Board of Revenue (FBR).
In his letter to Finance Minister Ishaq Dar, PBC Chief Executive Kamran Mirza said that such an attitude will adversely impact the country’s ability to attract investment.
“Our members are ethical and largest taxpayers in the country, and they are most disturbed by these ongoing arbitrary inquiries,” stated the letter.
The letter also stated that though increasing cost may prove beneficial in increasing revenues for the government in the short run but would have adverse effects eventually. This will also hinder the country’s ability to attract the critically needed investment – local and foreign.
While drawing attention towards a particular case, the official said that Phillip Morris (Pak) Limited, one of the largest private sector US investment and also the largest taxpayers in Pakistan, is also facing arbitrary/irrational tax assessments by FBR.
The letter warned that if these arbitrary/ irrational assessments persist and FBR continues to mishandle their tax issues, it may lead to unintended and unfortunate consequences.
The PBC requested the finance minister to urgently take up FBR’s tax handling problems saying, “We request you to give PBC an early opportunity to discuss ways and means to accelerate the economic growth rate since PBC’s primary objective is the promotion of economic growth via creating a healthy business environment that facilitates local and foreign investment.”
The PBC is a policy advocacy forum representing 45 of Pakistan’s largest business groups including multinational corporations. Currently, PBC members’ revenue is 9% of Pakistan’s GDP and its members contribute 13% to the total tax collection of the country.
