Bureau Report

KARACHI, AUG 1 /DNA/ – President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Ikram Sheikh, has welcomed the Federal Board of Revenue’s (FBR) achievement of its July tax target, calling it a positive indicator for the fiscal year ahead.

In a statement, Atif Ikram Sheikh expressed hope that the government would successfully meet the annual tax collection target. However, he emphasized that achieving this goal sustainably would require expanding the tax net rather than merely increasing tax rates.

He cautioned that while raising tax rates might help meet short-term targets, it does not contribute to broadening the tax base. “Without increasing the number of taxpayers, it will be impossible to achieve a sustainable tax-to-GDP ratio,” he added.

The FPCCI chief suggested that reducing tax rates on businesses and exporters could help stimulate economic activity, leading to increased revenue in the long run. “Lowering the tax burden on industries will encourage production, which will, in turn, boost overall tax collection,” he explained.

Atif Ikram Sheikh also noted that rationalizing tax rates would discourage tax evasion and bring more individuals and businesses into the formal economy.

He urged the government to work closely with the business community to implement a tax policy that promotes growth, encourages compliance, and supports long-term economic stability.