RCCI Demands Business-Friendly Tax Reforms

News Desk 

Rawalpindi: The Rawalpindi Chamber of Commerce & Industry (RCCI) on Thursday emphasized the need for a conducive and business-friendly tax environment to broaden Pakistan’s tax base and promote sustainable economic growth.

The Chamber hosted a high-level meeting with a delegation from the Regional Tax Office (RTO), led by Chief Commissioner Ms. Farhat Qayyum. The session focused on challenges facing businesses under the current tax structure and explored ways to enhance voluntary compliance.

Addressing the meeting, RCCI President Usman Shaukat highlighted that Pakistan has one of the highest corporate tax rates in the region, which hampers competitiveness and growth. He said that when combined with super tax and other levies, the effective tax rate exceeds 55 percent, levels more commonly seen in developed economies.

He urged tax authorities to reduce the burden on existing taxpayers, recognize compliant businesses, and shift the focus toward expanding the tax net rather than repeatedly taxing the same segment.

Shaukat also suggested non-monetary recognition measures for compliant taxpayers, including acknowledgment cards, priority facilitation at airports, and public recognition, noting that these steps can enhance motivation without imposing a financial burden on the state.

The RCCI president further recommended tax incentives for exporters, reduction in corporate tax rates, and strict action against harassment or corrupt practices by lower-level officials during audits, registration, and enforcement procedures, which create uncertainty and discourage compliance.

In response, Chief Commissioner Farhat Qayyum welcomed RCCI’s recommendations and highlighted ongoing digitization reforms, including digital invoicing and POS system implementation, aimed at reducing malpractices, enhancing transparency, and minimizing human intervention.

The meeting was attended by RCCI senior leadership, former presidents, members of the Executive Committee, representatives of trade associations and business sectors, and members of the Tax Bar Association.