OICCI calls for imposing tax on agri income

Source: Dawn

KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has urged the government to focus on broadening the tax base, which the authorities have been unable to expand due to lack of firm commitment, capacity and resource allocation constraints.

The chamber also recommended exploring the imposition of taxation on agricultural income despite this being a provincial subject, collecting advance tax on vehicle transfers, and promoting digital payments while discouraging cash transactions by demonetising the Rs5,000 note.

In a letter to Finance Minister Muhammad Aurangzeb, the chamber in its taxation proposals for 2024-25 budget said that leveraging technology for data analysis, end-to-end digitisation to fix loopholes in the system, and effective utilisation of banking and utility data will also be required to help the country achieve its true revenue potential.

OICCI strongly supported policy reform within the Federal Board of Revenue (FBR), including establishing a separate policy-making body and modernising IT systems. Furthermore, it emphasises capacity building through partnerships with trade bodies, targeted training programs, and strengthening field force capabilities.

The chamber also highlighted the importance of implementing a track and trace system in key sectors to bolster tax revenue and combat counterfeiting effectively.

In addition to FBR reforms, OICCI also emphasised the need for standardising the sales tax rates and policies nationwide, implementing a single sales tax return system under the "Pakistan Revenue Authority" and gradually reducing the sales tax rate to align with the regional average.