KARACHI, May 22: Finance Minister Dr Abdul Hafeez Shaikh has assured foreign investors that no new taxes would be imposed in the next budget.

He said budget proposals of Overseas Investors Chamber of Industry (OICCI) would be given due consideration in the run-up to the budget.

Addressing the OICCI members on Monday, he said that after the NFC award, there had been a significant reduction in the federal government’s revenue share without a corresponding reduction in debt servicing or other necessary expenditure on defence, security and ongoing projects.

He added that he now expected provinces to take a lead on new development projects. According to OICCI’s press release, Dr Shaikh pointed out that despite the global meltdown and challenging business environment, Pakistan’s 3.7 per cent GDP growth during fiscal year 2011–12 was comparable to growth rates across the region, excluding those in China and India. The Federal Board of Revenue had generated 17 per cent additional revenues in 2010-11 which were expected to scale up further to 25 per cent in the current fiscal year.

OICCI President Humayun Bashir said some 45 per cent of OICCI members had invested about $1 billion in 2011 and planned to invest $3 billion in next two to five years.

He underscored that these investment figures could be increased considerably if the government addressed key concerns such as security, energy shortage and ensures effective policy implementation. OICCI members raised important issues concerning the taxation structure in light of the upcoming budget, including loss of revenue accruing from the tax exempt sector and evasion in the form of rampant smuggling of consumer goods, especially under the garb of Afghan Transit Trade.

The OICCI proposed broadening of tax net through linkages of FBR databases with banks and other business centres, doing away with minimum tax and fixed tax regimes forcompanies, introducing a uniform tax rate of 30 per cent for all businesses irrespective of their legal status.