Karachi, February 3, 2024 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) announced its support on Saturday for the proposed restructuring plan of the Federal Board of Revenue (FBR).
In a statement, FPCCI President Atif Ikram Sheikh conveyed the business community’s backing for the initiative, as outlined by Dr. Shamshad Akhtar, the Federal Caretaker Minister for Finance and Revenue.
President Atif Ikram Sheikh emphasized that the separation of tax policy and collection functions, a key aspect of the restructuring plan, would address contradictions, conflicts of interest, and maladministration within the FBR. He stated that this principle lies at the core of the restructuring proposals and is the driving force behind the business community’s endorsement of the plan.
Dr. Shamshad Akhtar, during a high-profile visit to FPCCI’s head office in Karachi, briefed prominent trade and industry leaders on the measures taken by the caretaker government to stabilize the economy, control exchange rate volatility, and restructure the FBR.
The FPCCI President highlighted that the proposed bifurcation of inland revenue and customs would not only streamline FBR operations in alignment with international best practices but also address concerns raised by international financial institutions such as the IMF, World Bank, and Asian Development Bank. This move is particularly crucial for Pakistan, which anticipates reliance on external financing in the foreseeable future.
Atif Ikram Sheikh underlined the long-standing demand from the business, industry, and trade community for the complete digitalization and transparency of FBR operations to tackle harassment by tax officers and unnecessary issuance of tax notices.
The President of FPCCI also drew attention to specific issues within the edible oil industry, advocating for the abolition of Section 8-B of the sales tax act and the elimination of a 10 percent differential that currently discourages industrialists compared to commercial importers. He further proposed imposing higher tariffs on commercial importers than industries to facilitate the latter.
Saquib Fayyaz Magoon, Senior Vice President (SVP) of FPCCI, asserted that the input of the apex body must be incorporated into budget-making and taxation policies. FPCCI is actively aggregating feedback from chambers, associations, and trade bodies across Pakistan to formulate its budget proposals for the federal budget 2024 – 25.
SVP Saquib Fayyaz Magoon stressed the pivotal role of small and medium enterprises (SMEs) as the real engine of growth, generating employment and revenues for the country. He called for the facilitation of SMEs in economic, industrial, trade, investment, and taxation policies.
Dr. Shamshad Akhter acknowledged FPCCI’s demand for representation in important finance and revenue ministry committees, recognizing the business community as a genuine stakeholder in the economy. She also commended the active participation of the business community in the government’s consultative process through the FPCCI platform.
