RAWALPINDI: Emphasising the urgent need for a conducive and business-friendly tax environment to effectively broaden the tax net, the Rawalpindi Chamber of Commerce & Industry (RCCI) hosted a high-level meeting with a visiting delegation of the Regional Tax Office (RTO), led by Ms Farhat Qayyum, Chief Commissioner, RTO.

RCCI highlighted that Pakistan currently has one of the highest tax rates in the region, which poses serious challenges to business growth and competitiveness. Addressing the gathering, RCCI President Usman Shaukat stressed that sustainable economic growth is not possible without a fair, predictable, and growth-orientated tax regime.

He urged the tax authorities to reduce the excessive burden on existing taxpayers, recognise and acknowledge compliant and high tax-paying businesses, and shift the focus towards broadening the tax base instead of repeatedly taxing the same segment.

Highlighting the issue of high taxation, President RCCI noted that when super tax and other levies are combined, the corporate tax rate effectively goes beyond 55 per cent, levels more commonly associated with developed economies. He questioned how businesses could remain competitive locally when such high legitimate tax rates are imposed, while better services and facilitation are available abroad at comparatively lower costs.

He emphasised that businesses are willing to be tax compliant, provided the system is fair and facilitative.

He further suggested non-monetary recognition mechanisms for compliant taxpayers such as recognition cards, priority facilitation at airports, and public acknowledgment stating that such measures do not impose a financial burden on the state but significantly enhance the dignity and motivation of taxpayers.

The RCCI president also presented key recommendations, including tax incentives for exporters, reduction in the corporate tax rate, and strong action against corrupt practices and harassment by lower-level staff under the guise of registration, audits, and enforcement, which create uncertainty and discourage voluntary compliance.

In her remarks, Chief Commissioner Ms Farhat Qayyum appreciated RCCI’s constructive and pragmatic recommendations for broadening the tax net and sought the Chamber’s continued cooperation in improving tax compliance and revenue collection.

She informed the participants that digitization reforms are actively underway to curb malpractices, including digital invoicing and POS system installation, aimed at enhancing transparency and minimizing human intervention.

The meeting was attended by Senior Vice President Khalid Farooq Qazi, Vice President Fahad Barlas, former RCCI Presidents Najam Rehan and Asad Mashadi, members of the Executive Committee, representatives of markets and trade associations, various business sectors, and members of the Tax Bar Association.

Published in Dawn, January 16th, 2026