Fiscal measures to boost investor confidence: ABC

KARACHI: The American Business Council (ABC) of Pakistan has said that the government's fiscal measures will boost investor confidence. The ABC has also appreciated the government efforts to facilitate taxpayers, ameliorate ease of doing business and incentivise digitization of the economy.

In a statement issued Tuesday, the council said that the government of Pakistan has positively reflected on its policy recommendations and incorporated it in the Federal Budget 2021-22, focusing on the broadening of the tax base, removal of tax distortions and ease of doing business.

According to the ABC, the government has appreciated the efforts and valuable input of the Council, and incorporated ABC's proposals of, reduction in turnover tax from 1.5 percent to 1.25 percent, sales tax chargeability at time of the advance, reduction in withholding tax on distributors from 2 percent to 0.25 percent, withdrawal of FED on fruit juices, syrup, squashes water, and water containing added sugar for sweetening purposes and removal of Federal Excise Duty (FED) on MDR portion of digital payment transactions.

The Executive Committee of the Council held exclusive, high-profile meetings with the Chairman of Federal Board of Revenue Asim Ahmed, Federal Minister of Finance Shaukat Tarin, Chairman Board of Investment Atif R Bokhari and Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood.

The President of the American Business Council of Pakistan, Asif Peer was appointed as a Member of the FBR's Anomaly Committee, formed to identify and remove the technical and legal anomalies in the Finance Bill 2021.

"The ABC extends its gratitude to the Government of Pakistan and functionaries for their endless time and support, especially the Chairman of the Federal Board of Revenue, Asim Ahmed, Federal Minister of Finance, Shaukat Tarin, Board of Investment Chairman, Atif Bokhari, Advisor to PM on Commerce and Investment, Abdul Razzak Dawood. The ABC especially appreciates the value added by the Consul General, Rob Silberstein, at the US Consulate, during these discussions," said Asif Peer, President ABC.

The future holds incredible opportunities for the business community and if the Government of Pakistan continues to support in facilitating such inputs and discussions on challenges faced by the economy more avenues can be unlocked in future through valuable insights and dedication. We are grateful to the Government of Pakistan for incorporating our inputs in facilitating taxpayers and incentivising digitization of the economy, he added.