OICCI demands implementation of tax reforms
KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has called on the government to immediately implement long-delayed tax reforms, including a phased reduction in the corporate tax rate from 29 percent to 25 percent by 2030, to align Pakistan with regional economies and attract sustainable foreign direct investment.
Declaring that Pakistan is at a crossroads, OICCI Secretary General M Abdul Aleem warned that the window for reform is rapidly closing, and stressed the need for a fair, predictable, and investment-friendly tax regime in the upcoming Budget 2025-26. 'If we want to attract sustainable investment, widen our tax base, and support economic growth; the time to act is now, and initiate long term tax reforms. OICCI's proposals are not just about reducing taxes, they're about creating a system that is fair, predictable, and future-ready.'
Talking to Business Recorder on Budget proposals related to tax, the Secretary General said that every year the OICCI, after consultation with its members, put forward practical, data-backed recommendations to the government of Pakistan whose aim is to encourage investment, promote ease of doing business, and a growth-oriented tax system.
OICCI seeks key tax reforms to increase tax-to-GDP ratio
For Budget 2025–26, OICCI focused on five key areas including corporate tax rationalisation, broadening of the tax base, encouraging local manufacturing, supporting exports and green investments, and easing compliance for taxpayers. 'We have also proposed a gradual phasing out of the super tax; 6 percent this year, 3 percent next year, and full elimination by FY28,' he added.
OICCI strongly believes the proposed action will encourage formalisation and ease the burden on compliant taxpayers who are currently facing a disproportionately high effective tax rate, he said.
Aleem said that broadening the tax base remains a high-priority area and all sectors especially trade, agriculture, and services to be brought into the tax net proportionate to their share in GDP. It has observed that with some extra efforts there is data available in the overall banking and trade system to broaden the tax base.
In addition, OICCI has also called for a timeline to phase out tax exemptions in FATA/ PATA, greater transparency in refund disbursements, and strict enforcement against the illicit tobacco trade.
Copyright Business Recorder, 2025
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