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APBF urges govt to promote FDI, direct taxes in upcoming budget

APBF urges govt to promote FDI, direct taxes in upcoming budget

LAHORE: The All Pakistan Business Forum, in its budget proposals, has urged the government to promote foreign direct investment (FDI), increase share of direct taxes in revenue and lowering the slab of indirect taxes to achieve key economic targets.

APBF President M Ibrahim Qureshi said that the forum also suggested that the sales tax slab should immediately be curtailed in order to reduce inflationary pressures.

The APBF budget proposals cover recommendations, including proposals to incentivise investors, broaden tax net through documentation of economy, simplify tax system and reorganize FBR and many industry specific proposals.

Unveiling budget proposals at APBF head office, Ibrahim Qureshi said that only political will and drastic steps can revive the economy, which should be grown significantly and constantly for visible impact. He advocated the need for raising the country’s tax base so that tax-to-GDP ratio improves from current 9%.

He said, “APBF has given very detailed proposals for broadening tax base and identifying new potential taxpayers. It recommends that all income earners should pay taxes equitably, including on income from agriculture related activities and all kinds of government and banks saving schemes. All income earners without exception of any sector should be registered with proper national tax number (NTN). Tax authorities should ensure all NTN holders file annual income tax/wealth returns and wealth reconciliation statements. The culture of amnesty schemes should be completely eliminated as it discourages honest taxpayers. On Sales Tax APBF proposed Sales Tax rates should be reduced to single digit or at least in line with regional countries.”

Ibrahim Qureshi added that the proposals had input from all members across the country, and that no proposal will impact negatively in revenue collection.