Karachi Chamber of Commerce and Industry (KCCI) has mounted pressure on the government for the simplification of tax procedures in the upcoming budget for the fiscal year 2024-25.
In a series of proposals outlined by the KCCI, the emphasis was placed on strategic themes aimed at reforming the tax structure to foster a more conducive business environment.
The proposals put forward by the KCCI for the Budget 2024-25 encompass various crucial aspects:
• Reducing the Cost of Doing Business: The KCCI advocates for measures that would lower the overall cost of doing business, thereby creating a more favorable environment for economic growth and investment.
• Tariff Rationalization and Implementation of Cascading Structure: To boost local industries, the chamber suggests rationalizing tariffs and implementing a cascading structure that would incentivize domestic production and consumption.
• Simplifying Tax Procedures and Addressing Anomalies: One of the primary demands of the KCCI is the simplification of tax procedures to eliminate complexities and anomalies that hinder business operations.
• Shift from SRO Culture to Inclusive Approach: The chamber urges a departure from the prevalent SRO (Statutory Regulatory Order) culture towards a more inclusive approach that considers the interests of all stakeholders.
The KCCI emphasized its support for the government’s efforts towards fiscal consolidation while presenting these budget proposals. These recommendations, derived from inputs from members and trade bodies, are aimed at fostering a resilient and inclusive economic environment. The chamber aims to ensure that the proposed changes align with the collective aspirations and critical needs of the Pakistani populace, thereby nurturing a business climate conducive to sustainable growth and prosperity.
In recent years, Pakistan’s economy has grappled with various challenges, including macroeconomic disparities, supply chain disruptions, and an unfavorable global economic environment. Internal factors such as political turbulence and policy inconsistencies have further compounded these challenges. Despite resilience in the face of adversity, the economy’s fiscal health remains a cause for concern, characterized by a widening fiscal deficit and elevated levels of public debt.
High inflation, dwindling foreign exchange reserves, and a large current account deficit pose significant challenges. Collaboration with international financial institutions like the International Monetary Fund (IMF) has been instrumental in stabilizing the economy through financial support and structural reforms. However, adherence to IMF stipulations presents challenges for businesses and the wider economy, necessitating a delicate balance between meeting IMF requirements and addressing domestic economic needs in budgetary strategies.
The KCCI acknowledges its pivotal role during this critical juncture as a bridge between government policy formulation and industrial exigencies. Addressing the persistent shortfall in tax collection, the chamber advocates for extensive tax reforms focusing on broadening the tax base and streamlining the tax structure to make it fairer and less burdensome for businesses and individuals.
The KCCI’s budget propositions for the upcoming fiscal year prioritize equity, sustainability, and progress. These proposals aim not only to address immediate economic concerns but also to pave the way for widespread economic revival. Collaboration with the government and all stakeholders is essential for the efficient implementation of these proposals, recognizing that the prosperity of Pakistan’s economy is intricately linked with the welfare of its citizens. Moving forward, the focus must extend beyond conventional fiscal strategies to encompass human capital development, infrastructural enhancements, and innovation to unlock Pakistan’s latent potential fully.
