The federal government has agreed in principle to revise tax policy for the Multinational Corporations (MNCs) to end the multiplicity of indirect taxes on big corporate entities and to stop exit of MNCs from Pakistan.
The decision is part of the government policy to draft a new investment and business protection policy for the MNCs.
The primary objective must be to change the high import tariff protection policy to an export-oriented strategy for the MNCs.
The FBR will also change the policy of special concessions under the SROs and high tariff protection. The MNCs must be facilitated with the export-oriented strategy to rewards efficiency, innovation, and global competitiveness.
Under the plan, the government is considering Federal Excise Duty as an unfriendly tax for the multinational companies operating in Pakistan. The multiplicity of indirect taxes would be ended for the highest taxpaying and compliant MNCs to provide a level playing field”, a senior government official said.
The threat of mini-budgets on multinational companies with increase in rates of indirect taxes like withholding taxes, federal excise duty and sudden changes in tax policy are disaster for the MNCs. These big companies are working in a constant fear and uncertain environment of multiplicity of taxes which needs to be checked through a constant and stable tax policy.
The field formations of the FBR are also involved in seeking advances from the MNCs to meet the assigned ambitious revenue collection targets.
The FED was imposed primarily to reduce the consumption of sugar, the structured beverage sector uses very nominal percentage of the total sugar produced in the country and print the caloric value on its products. Major consumption of sugar is by untaxed sector like confectionary, biscuits, local sweet shops but there is no FED on this sector.
Few years back, the government revenue increased after reduction of the FED on some sector. The same tax policy would give relief to multinational companies for increasing revenue collection of the FBR.
The Overseas Investors Chamber of Commerce & Industry (OICCI) has recommended the government that the establishment of one federal authority will have a high impact on ease of doing business. The scope of revenue collection, the level of compliance and authority of enforcement, needs to be settled between the different revenue jurisdictions, and should not result in complexity for the MNCs. The OICCI also recommended phased reduction of the Corporate Tax Rate to 25 percent, gradual abolition of Super Tax, and reduction of turnover tax for regulated industries.
The Pakistan Business Council (PBC) has recommended taxing income instead of declared overseas assets, reducing withholding tax (WHT) on exporters and recyclables, separating tax policy from the Federal Board of Revenue (FBR) and gradually lowering the GST rate to 15 percent.
So in conclusion, people are forced to pay high taxes.
But multi nationals should not be taxed bcz they are rich. This is why this country dept will rise faster.
Tax all companies the same way we are taxed.
Why should I pay high taxes but the top richest companies prefer leaving over paying taxes ?
Keep taxes on these companies high
Useless argument. Shows the person has no economic vision
You can’t that’s the thing they’ll just leave if taxes are too high, also revision means taxation laws changing i.e how they are taxed not that they won’t be taxed
Also romove all exception on armed forces businesses
I totally agree with angry guy, this is totally unfair.
سب کچھ لٹا کے ہوش میں آئے تو کیا کیا۔
Better late than never
Business want to tax income bcz they can simply get loans and show income is less. That allows them to evade tax.
If you want to decrease taxes then decrease taxes on e commerce platforms like aliexpress and temu which are used by pakistan small businesses to boost sales.
Local businesses rely on these platforms to boost the economy
Multi nationals don’t matter much
حکومت ہر مرتبہ ،ٹیکس کی کمی، ease of doing business, اور اینرجی کی قیمتوں میں کمی سرمایہ کاری کےلئے سازگار ماحول کی خوشخبریاں دے خواب خرگوش میں محو ہو جاتی ہے۔
صرف اعلانات عملدرآمد صفر۔
Fitna imrania par pabandi lagha du sub kuch teek hojaigha
Its not only Taxes concern of Multi National Cos; its secondary in fact. No one local investors alike will ever invest where justice system is not just & fair. Investor always goes 1st for security of his investment then come other requisites
Bari jaldi khayal agia when most of them have already packed their bags and sold their assets.
All policies are made to acquire maximum capital under the name of xyz taxes.
The environment is not business friendly for the local or overseas groups. No incentives or income tax relief are provided to support flourish the industry. Ofcourse everyone will leave in time, the brain drain is already there and now even local groups are transferring their assets abroad.
We need multi national companies as we know the local people are not honest and will sell us expired degraded products but they are leaving not because of taxes but because of laws keep changing and overriding but the government and their handlers.
Revise salary taxes and skilled people won’t leave Pakistan.
Its not about the Taxes . They are leaving because of uncertainty and very much because of 27th Amendment.. because there is no judgment system remains in pakistan after 27th Amendment. NO JUDGEs will risk their Job by giving decision against the federation..
If MNC’s cannot servive the draconian law of the land how come an ordinary citizen? Government’s ambitious revenue targets are unrealistic which neither individuals nor the MNC’s can bear that’s why not only MNC’s but law abiding citizens are leaving the country the first chance they get. Atleast tax paying citizens get quality health, education & public services in a decent countries. FBR & Government acting like East India County all over again. Since start of this financial year FBR has changed it’s policies multiple times & still not sure about it, link it with IMF’s latest reports on corruption in Pakistan, the tax money goes into unaccountable black hole. FBR should place a procedure like FIA at air & seaport to offload MCS’s as well to stop them from fleeing this country for their lives 😂😂😂
Filing tax returns is a nightmare not only for ordinary citizens but for professional tax lawyers & practitioners all for what, so that Government can boost their books & sell ordinary people to international lending institutions for the money which eventually lands in their offshore bank accounts.
Thank God finally something good now they need to be firm on the policies and not change them again
And what about local companies and Salaried class? Will they be kept treated like slaves?