Multinational companies operating in Pakistan raised concerns over delayed tax refunds, alleged harassment and advance tax collection by the Federal Board of Revenue during an interactive session between members of the Overseas Investors Chamber of Commerce and Industry, representing over 200 multinational firms, and the newly appointed director general of the Tax Policy Office at the Finance Division.
According to a news report, the chamber also called for a reduction in the super tax rate from 10% to 6% in the 2026–27 federal budget, with a proposal to phase it out over three years. It also urged the government to lower the corporate tax rate by one percentage point annually over the next four years to improve competitiveness and investment planning.
According to an official statement, the discussion focused on policy-level and structural tax issues rather than individual cases. Participants acknowledged recent macroeconomic stabilisation but highlighted the need for greater predictability, consistency and transparency in tax policy and its implementation.
Key issues raised included prolonged delays in refund settlements, frequent policy changes and rising compliance costs. Members stressed that misalignment between stated tax policy objectives and on-ground implementation continued to undermine investor confidence.
The chamber also emphasised stronger institutional coordination, simplified procedures and a more consultative approach to tax reforms to support sustainable foreign direct investment inflows.
In a separate engagement, the Pakistan Business Council also met the Tax Policy Office as part of the government’s outreach on tax reforms. The discussion centred on separating tax policy from revenue administration and developing a predictable, growth-oriented tax framework.
The business council reiterated that long-term, consistent tax policy was essential to support investment, exports and economic formalisation, while ensuring a level playing field for compliant businesses.
Both engagements concluded with an understanding to maintain regular consultations so that industry input continues to inform tax policy discussions, with the stated objective of improving predictability, consistency and investor confidence in Pakistan’s tax framework.
