KARACHI: The representative chamber of foreign investors said on Monday the government should streamline the “unreasonably high taxes” on the corporate sector following the introduction of new levies, including super tax.

Overseas Investors Chamber of Commerce and Industry (OICCI) President Amir Paracha said the government has effectively increased the tax on organised businesses to over 40 per cent, the highest in the region.

“Pakistan is attracting insignificant foreign direct investment, well below its potential,” he said, adding that OICCI members continue to add substantial investment and have invested over $22 billion over the past 10 years.

While OICCI members remain concerned over the long-pending remittances of dividends and other charges, they’re supportive of the government’s actions and look forward to a gradual easing of strict controls on imports and remittances.

The OICCI president underlined the need for boosting the revenue base of the country by aggressively broadening the tax base, reduction in governance cost, reforms in all key state institutions, including the revenue authorities, state-owned enterprises and regulatory bodies at both federal and provincial levels.

With regard to the approval of a $3bn Stand-By Arrangement (SBA) with the International Monetary Fund for the next nine months, Mr Paracha congratulated Prime Minister Shehbaz Sharif and his finance team for their “timely leadership” and initiative in ensuring that the economy was not subjected to additional shocks.

Published in Dawn, July 25th, 2023