OICCI urges Sindh to harmonise taxes with other provinces

KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has urged the Sindh government to harmonise taxes levied in the province with the other provinces to ensure competitiveness to investors, a statement said.

The OICCI, the representative body of foreign investors operating in Pakistan, has sent its recommendations for budget 2022/23, where it said that taxes levied in Sindh should be harmonised with provinces to ensure competitiveness to the investors in Sindh.

The tax environment and framework are key considerations for any prospective investors, including foreign investors and amongst the key influencers in attracting Foreign Direct Investment (FDI) into a country, the OICCI said, while proposing simplifying the procedures and forms for filing the sales tax return.

Single Sales Tax return launched by the Federal Board of Revenue (FBR) in December 2021, for filing of single return, is required to be implemented in true spirit as currently sales tax returns of each province are required to be filed separately as required by provincial authorities.

The provincial taxes should be consolidated especially the labour levies e.g., EOBI/SESSI/WPPF/WWF as Integration of all Revenue Collections.

Currently, revenue collections of the Province of Sindh fall under the Sindh Revenue Board (SRB); Ministry of Excise and Taxation, and Sindh Board of Revenue (BOR) for taxes on transactions related to immovable property, stamp duties and agriculture tax.

OICCI recommended that the tax policies should be predictable, transparent, and consistent, saying that the policies should be implemented for the long term to facilitate and protect longer term investment plans of local and foreign investors.

The Chamber further stressed that no new taxes be levied during the fiscal year except removing harsh levies and anomalies.

The OICCI recommended that the tax authorities should use technology, data analytics including Artificial Intelligence tools and make better and effective utilisation of National Database and Registration Authority (NADRA) database and other documented sources to ensure that all income earners from services are included in the provincial taxpayers list.

The Chamber further urged for expanding the ambit of income from services by requiring marriage halls, art exhibition halls, and other public places holding large receptions to provide names and addresses of the respective persons involved in these business activities to the provincial tax authorities on a quarterly basis.