The Overseas Investors Chamber of Commerce and Industry (OICCI) has once again emphasized the need for a more stable and growth-oriented tax framework to attract foreign and local investment. As part of its budget recommendations, the OICCI has strongly urged the government to initiate a phased elimination of the super tax, proposing its complete removal over a span of three years.
The Chamber argues that the continuation of the super tax—originally introduced as a one-time levy on high-earning entities—has now become a recurring burden on the formal sector. According to the OICCI, the super tax not only raises the cost of doing business but also disrupts long-term investment planning due to its unpredictability. The Chamber has repeatedly stressed that such fiscal measures, when extended indefinitely, erode investor confidence and weaken the country’s competitiveness in the region.
In its latest proposals submitted to the Ministry of Finance, the OICCI called for a structured roadmap to gradually eliminate the super tax. The Chamber recommended that the super tax rate be reduced incrementally each fiscal year, ensuring its complete withdrawal within three years. This, the OICCI believes, would send a strong signal to both existing and potential investors about the government’s commitment to fiscal consistency and private sector growth.
Moreover, the OICCI noted that the super tax disproportionately impacts companies operating in the documented economy, while informal sector players often remain outside the tax net altogether. This imbalance discourages documentation and disincentivizes corporate expansion, the Chamber added. In this context, the removal of the super tax is seen not just as a fiscal measure, but as a necessary reform to promote equity and transparency in the taxation system.
The OICCI also highlighted that a predictable tax regime, free from surprise levies like the super tax, is essential for sustainable economic development. International investors, in particular, look for stability and clarity in tax laws before committing significant capital to emerging markets like Pakistan.
In conclusion, the OICCI’s call for a gradual abolishment of the super tax underscores the private sector’s desire for a more business-friendly environment. By committing to eliminate this levy within a defined timeline, the government could boost investor sentiment and reinforce Pakistan’s appeal as a competitive investment destination.