PBC seeks roadmap to cut tax burden on formal sector

As Pakistan has reached a Staff-Level Agreement (SLA) for $7 billion Extended Fund Facility with the IMF, the Pakistan Business Council (PBC) said the government should now take the formal sector into confidence by offering a roadmap on how and when their taxation burden will be alleviated. The body said the government should provide relief by cutting back on public expenditure and broadening the tax net. The government should also share the progress on digitalising and restructuring the FBR. The trust deficit between formal businesses and government is at its highest due to the lack of communication by the government in the lead-up to and following the budget announcement. PBC Chief Executive Officer Ehsan Malik said the country’s economic managers should come to Karachi, listen to businesspersons and consider their concerns, including a level playing field with the informal sector.