FPCCI Condemns Plans to Create Issues for Business Community by Increasing Taxes 

Atif Ikram Sheikh, President FPCCI, has made it clear that the business community is against any plans of a high-handed approach to enhance tax collection.   FPCCI has, time and again, stressed in no uncertain terms that the only way to effectively increase tax collection is through a meaningful consultative process with the stakeholders – that is business, industry, and trade community, he added.   Sheikh reiterated FPCCI’s stance that FBR’s revised tax collection target of Rs. 12.91 trillion for the fiscal year 2024–25 is not only unrealistic; but also regressive and anti-business. Because, in the current state of the economy, with no opportunities for businesses to expand, the shortfall in FBR’s tax collection will continue to spiral out of control as the July–August 2025 shortfall is Rs. 99 billion, and September 2024 deficit is expected to be between Rs. 100–150 billion, he added.   President FPCCI elaborated that the Ministry of Finance and the Federal Board of Revenue (FBR) should study the root causes of missing the tax collection target. The government needs to take concrete measures for export facilitation; renegotiation of power purchase agreements (PPAs) of independent power producers (IPPs); bringing key policy rates to single digits to match prevailing core inflation; rationalize power & gas tariffs and improve law & order in the country.   He highlighted that core inflation is expected to be around 8 percent in September 2024; while the policy rate is 17.5 percent. This much premium makes no economic or business sense. Interest rates must be in the single digits to curtail the cost of doing business and make access to finance possible. Why cannot we have proactive and pro-growth monetary policy, he questioned.   Sheikh maintained that FPCCI has always supported the broadening of the tax base through simplification of the taxation system – not through continuing with maladministration or lack of consultation. Micro, small and medium (MSMEs) need special governmental support to be brought into tax net through incentivization and enabling their growth.