FPCCI, PTBA team up to boost tax culture

KARACHI: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and the Pakistan Tax Bar Association (PTBA) agreed on Tuesday to form a joint committee to promote tax culture in Pakistan, broaden the tax base, simplify taxation rates and create awareness among the business community.

The agreement was reached during a visit by the newly-elected PTBA President Anwar Kashif Mumtaz and his team to the Federation of Pakistan Chambers of Commerce & Industry headquarters in Karachi, where they discussed matters of mutual interest regarding taxation reforms.

Mumtaz outlined his association’s plan of action, which envisages that chambers and associations should have zero tolerance for non-filers and should not verify or endorse those businesses that are not regular tax filers.

"Besides, FPCCI & PTBA should jointly organize National Tax Day on 24th February 2024 and there should be valid, up-to-date and reliable national tax database," a statement said. Furthermore, chambers and associations should promote awareness in the business community to pay their taxes and Federation of Pakistan Chambers of Commerce & Industry & PTBA should also collaborate in research & development activities to propose taxation reforms to the federal and provincial governments.

Acting FPCCI Chief Salman Chawla reiterated FPCCI’s stance that documentation of the economy is paramount; however, active tax filers should be treated with respect and facilitated.

Being in the system should be rewarding and not the other way round, he added. Chawla informed that FPCCI advocating taxation reforms in its proposals for the federal budget 2023 – 24; instead of leveraging the opportunity for concessions.

"We, at FPCCI, believe that broadening of the tax-base and end to harassment will be more productive as compared to sticking to the approach of taxing the taxpayers even more," he added.

M A Jabbar, vice president FPCCI, opined that simplification and rationalization of the taxation system in line with global best practices is required in Pakistan to adopt the models of developed economies.

He stressed that tax collection machinery and adjudication should be separated in order to maintain integrity, fairness and administrative efficiency. Jabbar added that a meaningful consultative process with the business, industry and trade community can yield more results for the country and its economy as opposed to issuance of thousands of notices.