The government’s planned move to continue charging the super-tax in the next financial year has been met with dismay by foreign organizations operating in the country. These reservations were raised by top officials of Pakistan Business Council, Overseas Investors Chamber of Commerce, American Business Council of Pakistan in a meeting held with prime minister’s advisor on tax revenue, Haroon Akhtar .
The Super-Tax was implemented in 2015 to meet the expenditures of the armed forces during the Operation Zarb-e-Azb and was supposed to generate funds for the rehabilitation of the population displaced by the operation and was implemented for only a year in the budget of the fiscal year 2014-15. But it was extended for another year in last year’s budget.
According to sources from the FBR, foreign organizations have expressed serious reservations over the planned continuation of the super-tax, and felt victimized for being a part of the documented economy. They also alleged that the tax was being applied selectively on companies earning over Rs 500m. Not only is the super-tax eating into the profits of these organizations but inhibiting foreign investment in the country too.
The three organizations lamented the fact that the government’s tax policy lacked coherency and consistency and believed the continuity of this tax will hurt the trust of foreign investors in Pakistan.
