Administration Applauds KATI’s Submissions; Prime Minister’s Office and Ministry of Planning Express Keen Interest
KATI’s Fiscal Proposals Centered on Economic Enhancement and Industrial Advancement, Asserts President Johar Qandhari
KARACHI: The Korangi Association of Trade and Industry (KATI) has unveiled an exhaustive 72-page fiscal proposal to the central authority, garnering accolades from government dignitaries. The Prime Minister’s Office and the Ministry of Planning have both shown a significant inclination towards integrating KATI’s recommendations into their strategic framework.
Johar Qandhari, the President of KATI, conveyed his optimism regarding the favorable reception from the government and the prospective adoption of their proposals. He accentuated that these propositions were meticulously crafted through extensive deliberations with pertinent stakeholders, with a prime focus on fostering industrial growth and tackling economic impediments.
The propositions underscore several pivotal areas for reform. KATI fervently advocates for expedited tax reforms and the broadening of the tax base. They propose capping the income tax rate at a ceiling of 15% and incorporating the agricultural sector into the standard tax framework. To mitigate inflationary pressures, KATI suggests reducing the interest rate to single digits.
Moreover, the proposals call for lowering the corporate tax rate to 20% and instituting a withholding tax framework. To invigorate the real estate sector, KATI recommends shortening the capital gains tax period from three years to one year. They also propose abolishing or suspending audits of the minimum tax regime to enhance direct cash flow.
Qandhari further delineated the necessity for a more efficient sales tax and value-added tax collection system, beginning with the initial imposition of a 5% sales tax. He expressed hope that the federal government would integrate these stakeholder consultations into the budget formulation process, lower the tax rate, and bring tax evaders into the tax net.
The proposals also emphasize the imperative of augmenting production capacity and reducing the costs of electricity, gas, and energy. These measures, Qandhari argued, would catalyze industrialization and propel Pakistan towards economic prosperity.
Qandhari reiterated KATI’s dedication to collaborating with the government to ensure that the budget reflects the requisites of the industry and the broader economy, thereby paving the path for sustainable economic growth.