President Atif Ikram Sheikh of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has criticized the Federal Board of Revenue (FBR) for its inability to meet tax collection targets. Despite imposing a hefty tax burden of Rs. 1,800 billion on citizens, the FBR failed to achieve its revenue goals, which Sheikh views as a clear indication of the board’s incompetence.
Sheikh further expressed concern over plans to raise tax rates to satisfy the International Monetary Fund (IMF) program requirements, stating that this approach is flawed and counterproductive. He highlighted a tax shortfall of Rs. 98 billion over the past two months, arguing that the government’s strategy of imposing additional taxes has not yielded the desired results. The salaried class and the export sector, in particular, have borne the brunt of these increased taxes. Instead of hiking tax rates, Sheikh emphasized the need to broaden the tax base in Pakistan.
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Karim Aziz Malik, Chairman of the FPCCI’s Capital Office, added that although inflation has decreased to 12 percent, the current interest rate of 19.5 percent remains excessively high and should be reduced to 15 percent. He warned that high interest rates encourage individuals to keep their capital in banks for profit, which, in turn, prevents money from flowing into the market.
Malik Sohail Hussain, Chairman of Coordination at FPCCI, highlighted another pressing issue: energy prices in Pakistan are among the highest in the region. The exorbitant electricity bills are causing significant distress across all business sectors, further hampering economic activity.
