Lahore: The Overseas Investors Chamber of Commerce and Industry (OICCI) has written a letter to Prime Minister’s Adviser on Finance Dr Abdul Hafeez Shaikh; calling upon the government to formulate and enforce transparent fiscal, long-term taxation policies and incentives pertaining to Ease of Doing Business (EODB), according to news sources.
The letter states that improved fiscal policies and tax incentives can rebuild confidence and encourage both local and foreign investors to pursue long-term commitments. Further, it appealed to the government to implement new policies to regain investments in the services and manufacturing sectors following the dismantling of pandemic restrictions – once the situation deescalates.
The OICCI, additionally, has urged the government to extend its credit timelines to June 2023 for new investments; in a bid to incentivize long-term projects (which can lead to a considerable improvement in the economic development of the country).
Further, the chamber has asked for an extension of tax credit scope on employment generation (given in manufacturing) to services industries; The chamber also asked for one sales tax return for the simplification of the tax compliance through harmonized sales tax rate countrywide. Additionally, it also urged the government to reduce the withholding taxes from five to 50% and slash the general rates of minimum taxes.
The letter recommended the slashing of withholding taxes on the import of new machinery and plants by industries to increase manufacturing capacity; further stating that allowing raw material imports without the requirement for advance tax payments in the first production year would ease the start-up costs.
Lastly, the OICCI appreciated the government’s efforts against the coronavirus pandemic in spite of its access to limited resources.
Hazafa reveres the art of writing and has been turned into a property enthusiast by profession. Her daily survival kit includes; tea, coffee, keyboard and paperbacks.
