- Visiting IMF review mission holds meetings with OICCI, PBC.
- PBC seeks reduction in energy rates, stresses tax rationalisation.
- Urges stronger enforcement to bring untaxed segments into tax net.
ISLAMABAD: Both the multinational and big local companies have asked the International Monetary Fund (IMF) to abolish Super Tax, reduce corporate tax in a phased manner and rationalise advance as well as withholding taxes in order to reduce the burden of compliant sectors, The News reported on Sunday.
The visiting IMF review mission held separate meetings with Overseas Investors Chamber of Commerce & Industries (OICCI), representing over 200 multinational companies and Pakistan Business Council (PBC), a representative body of 110 local and foreign giant firms in Karachi. Both bodies conveyed to the IMF that the tax burden for compliant firms was disproportionately much higher than that for tax-evading sectors, making their business unviable.
The PBC proposed five major recommendations to the visiting IMF review mission to fix the struggling economy of Pakistan, including an immediate reduction in taxation rates Corporate and Sales tax, abolishing super tax, inter corporate dividend tax on Associates/Subsidiaries and withholding tax on exports.
It demanded immediate reduction in energy rates, incorporating future benefits in cost reductions due to repayment of power companies’ debts and future increase in capacity utilisation.
According to a statement issued by the PBC, a delegation of Pakistan Business Council (PBC), led by its Chairperson Dr Zeelaf Munir, met with the visiting International Monetary Fund (IMF) mission headed by Iva Petrova, Head of Mission to Pakistan, and Mahir Binici, Resident Representative, to discuss Pakistan’s transition from macroeconomic stabilisation toward durable, export-led growth.
The PBC delegation noted that stabilisation must now translate into investment, productivity and employment generation. With the policy rate at 10.5% and a primary surplus recorded, the discussion focused on structural measures required to unlock private sector confidence.
Tax rationalisation formed a central part of the engagement.
It highlighted that the current structure places a disproportionate burden on compliant and documented enterprises. PBC called for the abolition of the super tax in all its forms, phased reduction of corporate tax rate to 25%, and rationalisation of advance and withholding tax regimes that act as de facto minimum taxes.
It reiterated that the tax base must be broadened rather than deepened, with stronger enforcement to bring untaxed segments into the net. The discussion also underscored the importance of policy consistency.
Energy competitiveness was also discussed. High and volatile industrial tariffs, along with sectoral distortions in agriculture and food value chains, continue to impede value addition and export diversification.
PBC emphasised that fiscal space created through stabilisation should increasingly support productivity-enhancing and job-creating industry.
