News & Events

The Federal Minister of Finance Mr. Shaukat Tarin invited Executive Committee Members of the ABC to his residence in Karachi on the second day of Eid, 14th May 2021. The group had a one-on-one discussion regarding the Federal Budget 2021 – 2022 and explored possibilities of working out a framework that optimizes Government revenue and incentivizes digital transactions.

The Finance Minister supported the removal of excessive taxes in order to mediate challenges of conducting business in the country and to facilitate compliant taxpayers. Mr. Tarin further advocated a One-Window facility for all American companies. He solicited feedback from Executive Committee Members present to assist the Government in developing the idea of single-window operations that protect and promote the interests of foreign investors.

This meeting with the Minister of Finance in an informal setting at his home in Karachi set the tone for further discussions with GoP functionaries to create influence and impact on Policy & Budget formulation. The American Business Council of Pakistan went ahead to deliberate matters with relevant stakeholders after circulation of its official Federal Budget Policy recommendations.

Joint Follow up with the Finance Division

As a follow up to ABC’s one-on-one meeting with the Finance Minister, The American Business Council (ABC) collaborated with Overseas Investors Chamber of Commerce & Industry (OICCI) and Pakistan Business Council (PBC) to hold discussions with the Finance Division on 29^th May 2021.

The three leading Business Chambers presented the following joint recommendations:

1. Minimum Turnover Tax be progressively reduced and replaced with Normal Tax Regime.
2. Release Cash Flow by exempting tax filers from Section 8B of STA 1990 and allowing inter-adjustment of income and sales tax refunds.
3. Incentivize investment in manufacturing by restoring Section 65B and extending 65D & 65E be extended till 2025.
4. Mitigate complexity and make it easier to do business by reducing number of withholding taxes on filers to maximum 10 and abolishing the Final Tax Regime
5. Make Pakistan an attractive destination for investment by introducing One Income Tax rate for all corporates including banks.
6. Control Evasion by Electronic Data Interchange with major trading partners to reduce under invoicing & misdeclaration of imports and curb illicit trade in oil, cigarettes, Tea & FMCG products through effective enforcement.
7. Accelerate formalization and broadening of the tax base by restoring Section 65A.

This was the first time three of Pakistan’s leading Business Councils used a collaborative approach to highlight challenges across industries and present recommendations for ease of doing business in Pakistan.