KARACHI: Muhammad Sajid, Convenor of the FPCCI Central Standing Committee, has raised serious concerns regarding the country’s tax policies, warning that the government’s aggressive taxation strategies and increased powers granted to tax collection agencies are discouraging investors and businessmen from operating within Pakistan.
Speaking at a recent gathering of business leaders, Sajid criticized the authorities for imposing tax demands on businesses regardless of their financial performance. He emphasized that while people are willing to pay taxes, excessive taxation and undue personal demands from officials have created an unhealthy business environment. According to him, tax officials often inflate tax liabilities unfairly and then solicit bribes to reduce them.
Sajid stressed the need for a taxation system that encourages compliance rather than burdens business owners, suggesting that relief should be provided in such a way that individuals and companies voluntarily pay taxes without hesitation. He pointed out that many businessmen desire to pay taxes to keep their earnings legitimate, but excessive taxation discourages them. “If someone is not earning, how can they be expected to pay taxes?” he questioned, arguing that tough tax policies should be reserved for individuals engaged in illicit financial activities rather than struggling entrepreneurs.
Comparing Pakistan’s tax environment to that of developed economies, Sajid cited Dubai as an example where the government facilitates businesses by offering tax relief and ensuring a harassment-free environment. He noted that many traders and businessmen have moved abroad in search of better business prospects due to Pakistan’s increasingly stringent tax regulations.
The business community continues to push for reforms, urging the government to adopt a more investor-friendly tax framework to prevent capital flight and encourage economic growth. As discussions on tax policies intensify, stakeholders hope for a balanced approach that supports revenue collection while fostering a conducive business climate.