In a noteworthy development, the Overseas Investors Chamber of Commerce and Industries (OICCI), representing over 200 prominent multinational companies, has presented a comprehensive set of eight recommendations to the caretaker finance minister, Dr. Shamshad Akhtar. These recommendations aim to not only broaden the tax base but also usher in a transformative change in Pakistan’s fiscal landscape.
One of the key proposals put forth by OICCI is the introduction of stricter regulations on cash transactions exceeding Rs 50,000, necessitating the use of identity cards. This measure seeks to enhance transparency and curb potential financial irregularities.
Another crucial recommendation from OICCI is the phased elimination of Rs 5,000 notes. This move aligns with the government’s effort to combat the shadow economy and promote digital financial transactions.
OICCI has also brought to light a staggering revelation – the tobacco industry in Pakistan is allegedly saving a substantial sum of 80 billion rupees in excise duty. This revelation has sparked concerns, especially considering that only two multinational companies dominate the market. Of these, one company holds a dominant 60 percent market share and contributes a staggering 99 percent of tobacco taxes.
The chamber’s recommendations extend to the service sector, where they emphasize the ample availability of data for effective taxation. This suggests an untapped potential for revenue generation in this sector.
Former NADRA Chairman, Dr. Tariq, has provided a compelling analysis supported by data, advocating the use of artificial intelligence (AI) to uncover new sources of revenue. This forward-looking approach has the potential to revolutionize Pakistan’s revenue collection system.
OICCI’s eight-point recommendations are poised to reshape Pakistan’s tax landscape, addressing issues ranging from cash transactions and high-denomination notes to tax disparities in the tobacco industry and the integration of AI for revenue enhancement. As these proposals gain momentum, they hold the promise of a more transparent and efficient tax system, benefiting both the government and the business community. Stay tuned for further developments on this crucial issue.
, representing over 200 prominent multinational companies, has presented a comprehensive set of eight recommendations to the caretaker finance minister, Dr. Shamshad Akhtar.){kind=link}