Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial has announced that the government will abolish the Super Tax in a phase-wise manner to reduce the tax burden on large corporate entities, multinationals, and businesses with substantial turnover.
The tax authorities announced on the second day of the economic dialogue arranged by the Pakistan Business Council on Thursday.
National Coordinator of the SIFC, Lt. Gen. Sarfraz Ahmed, acknowledged the concerns raised by the business community regarding the Super Tax and high corporate tax rates.
The FBR chairman admitted that the manufacturing and corporate sectors are heavily taxed, and said that tax rationalization is essential to make them competitive. “We know there is no justification for taxes like the Super Tax and high corporate tax, and we are working to reduce them from whatever fiscal space becomes available to us,” he said.
Langrial stated that the government has finalized a roadmap to enhance the tax-to-GDP ratio to 18 percent by FY28.
He stated that more than 90 percent of hospitals in the country accept only cash, rather than payments through debit/credit cards or online bank accounts, in an attempt to conceal their actual income.
Langrial added that only 150,000 doctors are registered with the FBR, and on average, they pay just Rs. 2 million in income tax per annum, a figure he described as mind-boggling, given that their lifestyles suggest earnings of over a million rupees per month.
