ISLAMABAD, May 9, 2025 — The Overseas Investors Chamber of Commerce and Industry (OICCI) has urged the government to prioritize broadening the tax base in the upcoming budget for FY2025-26, stating that this is essential to achieving a sustainable tax-to-GDP ratio of 15%.
In its detailed budget proposals, the OICCI emphasized that rather than increasing the tax burden on already compliant taxpayers, the Federal Board of Revenue (FBR) must allocate substantial resources—including IT systems, manpower, intelligence gathering, and data analytics—to systematically broaden the tax base.
The OICCI pointed out that the FBR already possesses data on unregistered individuals and businesses conducting high-value transactions. Sources include banks, utility companies, financial institutions, NADRA, FIA, PITB, and SCBA. Despite this, efforts to convert this intelligence into active taxpayer registration have remained inconsistent.
The chamber specifically cited the failure of initiatives like the Tajir Dost Scheme, which aimed to register small traders, as a result of poor stakeholder management, undertrained FBR personnel, and lack of accountability. To correct this, the OICCI recommended a clearly defined roadmap with short- and long-term goals focused on the broadening of the tax net.
Key recommendations include:
• Establishing a specialized task force responsible for registering identified unregistered individuals and businesses.
• Launching focused awareness campaigns targeting specific segments of the informal economy.
• Introducing streamlined and accessible tax registration processes, including tax clinics in underserved rural areas.
• Providing incentives such as tax holidays or reduced penalties to encourage voluntary compliance and registration.
The OICCI believes that meaningful broadening of the tax base would boost national revenues without raising tax rates. “This approach promotes equity, enhances competitiveness, reduces the size of the informal economy, and helps move towards a more stable and transparent fiscal framework,” the chamber stated.
In addition to new measures, the OICCI recommended that the FBR revitalize existing initiatives, including:
• Expanding POS registration among Tier-1 retailers.
• Reinstating the POS Prize Scheme.
• Accelerating implementation of the Track and Trace System across all major sectors.
• Enforcing real-time e-invoicing for sales and purchases across supply chains.
By focusing on effective management and follow-through of current programs, alongside a robust strategy for broadening the tax base, the OICCI believes Pakistan can achieve its fiscal targets and promote long-term economic stability.