‘Fiscal measures to boost investors confidence’

KARACHI: US-based companies operating in Pakistan on Tuesday bet on government’s fiscal measures to boost investors’ confidence, appreciating efforts of the government to facilitate taxpayers, ameliorate ease of doing business and incentivise digitisation of the economy.

The American Business Council (ABC) of Pakistan said the government has positively reflected on its policy recommendations regarding the taxpayer’s base.

A comprehensive publication of collated and categorised proposals was submitted for consideration to the government. The recommendations focused on the broadening of the tax base, removal of tax distortions, and ease of doing business.

The executive committee of the council held meetings with the government representatives, including Federal Board of Revenue Chairman, Minister of Finance, Board of Investment Chairman and Adviser to the Prime Minister on Commerce and Investment.

ABC President Asif Peer was appointed as a member in the Federal Board of Revenue’s anomaly committee formed to identify and remove the technical and legal anomalies in the Finance Bill 2021.

Government appreciated the efforts and valuable input of the council, and incorporated ABC proposals of reduction in turnover tax from 1.5 percent to 1.25 percent, sales tax chargeability at time of the advance, reduction in withholding tax on distributors from 2 percent to 0.25 percent, withdrawal of federal excise duty on fruit juices, syrup, squashes water, and water containing added sugar for sweetening purposes and removal of federal excise duty on digital payment transactions.

“ABC extends its gratitude to the government and functionaries for their endless time and support,” Peer said in a statement.

“The future holds incredible opportunities for the business community and if the government of Pakistan continues to support in facilitating such inputs and discussions on challenges faced by the economy more avenues can be unlocked in future through valuable insights and dedication.

We are grateful to the government of Pakistan for incorporating our inputs in facilitating taxpayers and incentivising digitisation of the economy.”