Karachi, May 07, 2019 (PPI-OT): Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI); Mr. S.M. Muneer, leader of the business community, Former Chief Executive TDAP and Former President, FPCCI; Mr. Iftikhar Ali Malik, SVP, SAARC CCI and Former President of FPCCI and all Office Bearers of the FPCCI have congratulated Syed Shabbar Zaidi on his appointment as Chairman of the Federal Board of Revenue (FBR) for which he rightly deserved by virtue of his long and outstanding experience in the field of chartered accountancy and as such is well versed with the Pakistan’s tax law, key policy matters governing fiscal strategy, corporate regulation, foreign exchange regime and main ailments of its economy.
They also hailed the decision of the government for bringing a professional person on such a vibrant post to steer the country out of the challenges being confronted by the FBR and hoped that the new incumbent would take long and short term measures to gradually enhance Tax-to-GDP ratio from 13% to its actual potential of 26% as the low ratio is mother of all economic ills such as higher tax rates ; tax evasion ; thin tax-base ; exponential increase in parallel economy; historically low revenue shortfall(estimated to be Rs. 486 billion by June 2019) etc. They elaborated that out of 210 million population only 1.8 million (less than 1%) returns were filed in 2018.
“This underscores the need to bring all the sectors of the economy in tax-net and wherever the income is generated be taxed with political will as at present manufacturing sector is overly burdened (pay 62% of total taxes) in comparison to its contribution (20.3%) in GDP whereas agriculture and service sectors share in tax payment is 1% and 37% respectively although their contribution to GDP is 19% and 60% respectively”, they added. They proposed that FPCCI should be consulted in formulation of business friendly tax policy to ensure its smooth implementation.
They were confident that the existing cordial relations between the FPCCI and the FBR would be further strengthened for the benefit of both the stakeholders – FBR and trade and industry and assured the FBR Chairman of their full support and co-operation for the promotion of tax culture in the country.
For more information, contact:
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan