- The Pakistan Business Council is concerned about the 18% GST leading to tax evasion in an undocumented economy.
- The high GST rate encourages businesses to stay informal, reducing the documented economy and tax base.
- The corporate sector faces a high effective tax rate of 48%, making Pakistan less attractive for investors.
- The PBC suggests reducing GST by 1% annually until it reaches 15% to reduce evasion and increase tax compliance.
- Multiple taxation of dividends within group structures discourages company consolidation and diversification.
- High taxes on salaried individuals contribute to brain drain, with a combined tax rate of 54% on income.
- The PBC recommends revising income tax slabs to account for inflation and reduce the burden on salaried individuals.
- The PBC calls for lower GST, rational corporate taxes, and fairer individual taxation to combat tax evasion and talent loss.
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
