KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has asked the government to concentrate on pulling in foreign direct investment (FDI) with steady levy strategies and favourable taxation policies.
The financial specialist’s body on Wednesday presented its 54-page document – contains more than 100 wide-range budgetary recommendations – to the Federal Board of Revenue (FBR). Document includes proposals for willing investors, grow the duty net through documentation of the economy, simplification of tax system and reorganisation fo FBR.
The OICCI said that long haul venture arrangements ought to be suitably ensured for no less than five-year period for investors to build their arrangements with respect to approaches which are steady and uprising.
OICCI further proposed tax credit and rebates for entities issuing electronic receipts to check “flying invoices” under section 65B of the Income Tax Ordinance, 2001 and 15% tax credit for three years (under section 65C) from year of listing.
Also, sales tax credit for newly established industrial undertakings that is up to June 30, 2016 under section 65D of Sales Tax Act, 1990 should to be extended to June 30, 2018 and tax credit under section 65E of Finance Act, 2012 for new investment in industrial undertaking to be extended to June 30, 2018.
Moreover, to pull FDI, levy of withholding tax at import stage of plant and machinery should be exempted for new FDI. OICCI also forward its suggestions for reorganisation of FBR regarding Large Taxpayers Unit (LTU), Minimum Tax Regime (MTR) and Alternate Corporate Tax (ACT).