Karachi, December 12, 2023 – Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Pakistan Tax Bar Association (PTBA) have joined forces to spearhead an ambitious agenda for the broadening of the tax base in Pakistan.
Muhammad Suleman Chawla, the Acting President of FPCCI, announced the accord, revealing that the apex body has, in principle, embraced the diverse proposals put forth by PTBA. The collaboration aims to establish a joint committee focused on fostering a robust tax culture, expanding the tax base, simplifying taxation rates, and fostering awareness within the business community.
The collaboration gained momentum as Mr. Anwar Kashif Mumtaz, the recently-elected President of PTBA, and senior members of his team visited the FPCCI headquarters in Karachi. Discussions revolved around shared goals and aspirations concerning taxation reforms in the country.
Chawla reiterated FPCCI’s commitment to prioritizing the documentation of the economy. He emphasized that while it is crucial to incentivize active tax filers, it is equally imperative to treat them with respect and provide facilitation. “Being in the system should be rewarding and not the other way round,” he added, underscoring the importance of making participation in the tax system a positive experience.
Informing about FPCCI’s advocacy in its proposals for the federal budget 2023 – 24, Chawla highlighted the organization’s belief that broadening the tax base and ending harassment would yield more productivity compared to burdening taxpayers with additional levies.
Eng. M. A. Jabbar, the Vice President of FPCCI, contributed to the dialogue by emphasizing the need for simplification and rationalization of the taxation system, aligning it with global best practices. He stressed the importance of separating the tax collection machinery and adjudication processes to uphold integrity, fairness, and administrative efficiency.
Jabbar further advocated for a meaningful consultative process with the business, industry, and trade community, asserting that it would yield superior results for the country’s economy compared to the issuance of thousands of notices.
President PTBA, Anwar Kashif Mumtaz, outlined the association’s comprehensive plan of action. Among the key points were a call for zero tolerance for non-filers by chambers and associations, a refusal to verify or endorse businesses that are not regular tax filers, and the proposal to jointly organize a National Tax Day on February 24, 2024.
Mumtaz emphasized the need for a valid, up-to-date, and reliable national tax database, urging chambers and associations to play a pivotal role in promoting tax awareness within the business community. He also proposed collaboration between FPCCI and PTBA in research and development activities aimed at proposing taxation reforms to the federal and provincial governments.
As FPCCI and PTBA embark on this collaborative journey, their combined efforts are poised to reshape Pakistan’s tax landscape, fostering a more transparent, efficient, and business-friendly environment. The alliance signals a proactive step towards achieving comprehensive taxation reforms that align with global standards and ensure the sustainable economic growth of the nation.
