KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has hailed the government’s move to detach the tax policy from the Federal Board of Revenue (FBR). It is viewed as an important step in enhancing transparency, boosting efficiency, and stimulating the economic growth of the nation.
FPCCI President Atif Ikram Sheikh, in a formal release, greeted the establishment of the National Tax Policy Unit as a crucial decision for the national good. He outlined that it is necessary to have tax policy formulation separate from the collection of tax to make it more transparent and efficient.
Sheikh added that the dual role of the FBR as a policy-maker and a tax collector previously had opened avenues for corruption and tax evasion. He stressed that where the same organization is involved in both activities, conflicts of interest arise and inefficiency occurs.
FPCCI president further mentioned that the business community had been long pursuing this change to develop trust and ensure increased compliance with taxes.
As per the FPCCI, an independent National Tax Policy Unit formation will not just enhance governance but also broaden the tax base. The simplified taxation system added Sheikh, will encourage more people to come to the formal economy, thus increasing national revenue without putting an additional burden on existing taxpayers.
“The emphasis of such reforms should be on broadening the tax base and streamlining the tax system,” said Sheikh. He further pointed out that the new policy unit, independent of the FBR, would enable the FBR to concentrate exclusively on effective tax collection and enforcement.
The FPCCI is hopeful that with the Finance Minister at the helm of the new unit, Pakistan will see improved tax compliance and a more equitable sharing of the tax burden. The organization reconfirmed its commitment to backing the government’s initiatives in instituting these reforms, which are important for the economic stability of the country.
In summary, the FPCCI called on authorities to ensure the successful implementation of these reforms and emphasized the need for ongoing dialogue between policymakers and the business community to solve problems and improve the results for Pakistan’s economy.
