KARACHI, MAY 5: /DNA/ – The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, and the President and former provincial minister, Mian Zahid Hussain, said on Monday that comprehensive tax reforms are indispensable to reposition Pakistan’s economy on a sustainable footing.
He said that excessive strictness in collecting taxes will harm instead of benefit, as it will discourage businesses.
Mian Zahid Hussain said that a large number of taxes is making the system more complex, while the focus of tax policy should not be only on increasing revenue but also on ease of doing business and global competitiveness.
Talking to the business community, the veteran business leader said that the current tax structure is complex, non-transparent, and unfair, hurting the business community and making efforts to expand the tax net difficult.
Mian Zahid Hussain said that the burden on taxpayers is continuously increasing. At the same time, there is a lack of effective action against tax defaulters, which is discouraging taxpayers and encouraging tax evaders.
The business leader added that the Federal Board of Revenue should be given complete autonomy, and the need for contact between taxpayers and tax collectors should be reduced through automation and digitalisation so that problems like corruption and delays are reduced.
Mian Zahid Hussain stressed that the FBR should be free from political interference to perform better, adding that increasing revenues without increasing the tax net is impossible.
He noted that much of Pakistan’s population is outside the tax net, mainly due to a lack of trust and a complicated tax filing system. The online system should be made easy and transparent for taxpayers, who should be encouraged to join it.
Mian Zahid Hussain said that bringing agriculture, property, wholesale, and retail sectors into the tax net is the need of the hour. Big shopping malls and markets do business worth billions of rupees, but most do not pay full tax.
The government should collect data on these sectors and ensure their monitoring through technology.
Mian Zahid Hussain said that the government and the FBR should increase the consultation process with the business community to include their opinions in the reform process.
He warned that increasing the tax net significantly is impossible without establishing an atmosphere of trust. Along with strict measures against tax evasion, it is also necessary to respect and accommodate honest taxpayers, and various programs can be introduced for this purpose.
Mian Zahid Hussain further said that the President issued the Tax Law Amendment Ordinance 2025, after which the FBR’s powers increased immensely, and the FBR was given the authority to withdraw funds from taxpayers’ bank accounts unilaterally.
In addition, the FBR can now deploy its own or any other organisation’s staff at taxpayers’ factories, etc., for surveillance. This decision has been taken to ensure the achievement of tax targets and prevent tax evasion.
However, instead of increasing tax collection, these powers will lead to a huge increase in corruption, while the country will experience a decrease in business ease.
He demanded that the business community have legitimate reservations about this Ordinance, which should be considered and withdrawn.
Mian Zahid Hussain expressed hope that if the government and institutions seriously implement reasonable reforms, revenues will increase, the economy will be stable, and dependence on international financial institutions will be reduced.
