Karachi, The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President, Atif Ikram Sheikh, called for a significant overhaul of the nation's tax system, advocating for an expansion of the tax base and simplification of tax regulations to improve the tax-to-GDP ratio. Sheikh underscored the necessity of adding 1.5 to 2 million new taxpayers over the next five years to achieve a tax-to-GDP ratio of 15 percent, highlighting the failure of past efforts that focused on increasing the burden on existing taxpayers. He detailed a strategic approach focused on digitalization, reforms in consultation with the business community, and an end to the maladministration and harassment by the tax authorities.

According to Federation of Pakistan Chambers of Commerce and Industry, Sheikh emphasized the FPCCI's support for the government's aims to enhance the tax-to-GDP ratio but insisted that it must be done by broadening the tax base rather than imposing additional burdens on those already taxed. This stance comes in light of the need for Pakistan to negotiate a new, comprehensive IMF program anticipated to demand further tax impositions, amid challenges such as the COVID pandemic, natural disasters, and fluctuating market conditions that have already strained the trade and industry sectors.

Sheikh further addressed the current economic indicators, noting a decrease in core inflation to 12.8 percent and headline inflation to 20.7 percent in March 2024, the lowest in 22 months, with expectations for continued improvement. He advocated for the reduction of the key policy rate and the introduction of competitive financing schemes for exporters to bolster the economy.

The FPCCI's call for tax system reform, amid challenging economic conditions and the need for a more equitable approach to taxation, marks a critical moment for Pakistan's economic strategy moving forward.