Multinational companies operating in Pakistan have urged the government to reduce the super tax rate from 10 per cent to 6 per cent in the federal budget for 2026–27, with a gradual abolition over the next three years, while also expressing serious concerns over delayed tax refunds, alleged harassment, and the collection of advance taxes by the Federal Board of Revenue (FBR).
The concerns were raised during a meeting on Thursday between representatives of the Overseas Investors Chamber of Commerce and Industry (OICCI) and Dr. Najeeb Memon, Director General of the Tax Policy Office (TPO), at the Finance Division. OICCI represents more than 200 leading multinational companies operating in Pakistan.
Foreign investors called for the establishment of a predictable and stable tax framework, highlighting persistent challenges such as prolonged refund delays and frequent policy changes that undermine business confidence.
OICCI members emphasized that businesses plan over long horizons, and frequent changes, unclear interpretations, and retrospective measures raise the cost of capital and erode investor confidence.
Yousaf Hussain, President of OICCI, said the real value of proposed tax policy reforms lies in how they translate into improved predictability, consistency, and meaningful stakeholder engagement.
He added that a consultative, well-signalled, medium-term tax policy framework focused on broadening the tax base, simplifying compliance, and aligning taxation with national priorities such as investment, exports and job creation would significantly improve investor sentiment and support sustainable economic growth.
During the session, OICCI members deliberately focused on systemic and structural issues rather than operational matters, stressing the need for transparency and policy predictability.
Members identified prolonged delays in tax refund settlements, frequent changes in tax measures, and the cumulative cost of doing business as critical areas requiring policy-level intervention.
Abdul Aleem, Secretary General of OICCI, said foreign investors are increasingly looking beyond short-term stabilization towards structural reforms, noting that timely settlement of tax refunds and consistent policy implementation are essential for Pakistan to remain competitive.
Dr. Najeeb Memon appreciated the quality of engagement and assured participants that stakeholder input remains central to effective tax policymaking, saying the Tax Policy Office values evidence-based input from OICCI and its members.
The session concluded with both sides agreeing to maintain regular engagement to ensure investor perspectives continue to shape tax policy discussions, with the shared objective of improving predictability, consistency, and investor confidence in Pakistan’s tax framework.
Funny how they don’t want to pay taxes but ok with selling at higher prices.
Corp taxes should be paid.