Could 15, 2025 (MLN): The Abroad Traders Chamber of Commerce and Trade (OICCI) has submitted its complete Taxation Proposals for the upcoming Fiscal Funds 2025–26, specializing in reforms to foster sustainable development, appeal to funding, and increase the tax base in Pakistan.

The OICCI has welcomed the federal government’s landmark transfer to ascertain a Tax Coverage Board (TPB) underneath the Ministry of Finance, separating coverage formulation from tax administration.

This long-standing suggestion by the chamber is considered as a essential step towards making a extra clear and predictable tax framework.

Amongst its main proposals, OICCI recommends regularly decreasing the company tax fee from 28% to 25% and phasing out the Tremendous Tax over three years to enhance enterprise competitiveness.

The chamber additionally proposes restoring aid on intercorporate dividends, eradicating tax on bonus shares, and decreasing the minimal turnover tax for low-margin sectors.

To handle client and trade challenges, the chamber has urged decreasing the gross sales tax fee on items from 18% to fifteen% over a phased timeline and restoring the zero-rated regime for prescription drugs.

It has additionally known as for eliminating the 5% regulatory responsibility on telecom energy gear and exempting 5G infrastructure from taxes.

On broadening the tax base, OICCI emphasizes leveraging expertise and knowledge to make sure all sectors together with agriculture, wholesale and retail commerce, and actual property contribute proportionately to nationwide revenues.

It additionally urges stricter enforcement towards illicit commerce, particularly within the tobacco sector, which it estimates causes over Rs300 billion in losses yearly.

Additional suggestions embrace growing the taxable revenue threshold for people to Rs1.2 million, abolishing the ten% surcharge on excessive earners, restoring tax credit for mutual fund investments, and offering particular aid for expatriate Pakistanis.

OICCI additionally helps introducing tax incentives for sustainability efforts, selling native manufacturing, and enhancing exports by tax credit for incremental international gross sales.

As the most important non-public sector tax contributor within the nation, OICCI affirms its dedication to collaborating with the federal government to make sure a good, clear, and growth-oriented taxation atmosphere.

With over 200 member corporations contributing greater than one-third of the nation’s tax revenues and investing $23bn over the previous decade, the chamber continues to play an important position in shaping Pakistan’s financial future.

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Posted on: 2025-05-15T13:55:04+05:00

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