Pakistan Takes New Approach to Business Taxation

July 25, 2014 Taxation in Pakistan

ISLAMABAD – Tax authorities in Pakistan will take a friendlier approach when dealing with business, in the hopes of boosting tax collections.

On July 24th the Director of General Intelligence and Investigation of the Inland Revenue Ejaz Hussain assured businesses in Pakistan that national tax authorities will not take any actions which could jeopardize business activity while collecting owed taxes.

The Director indicated that a key step to bridging the communications gap between business and tax authorities is to establish a Dispute Resolution and Advisory Committee comprised of members of the Federal Board of Revenue and the Islamabad Chamber of Commerce and Industry.

Further, Ejaz Hussain confirmed that the staff of tax authorities have been instructed not to use any coercive, specifying that criminal proceedings will only be used as a last result against heavily incompliant taxpayers, and that staff of the FBR are not allowed to conduct raids on businesses without permits, adding that business owners should not feel obliged to cooperate with FBR representatives who cannot present a warrant.

The understanding approach to taxation of businesses is intended to encourage more businesses to pay their taxes.

Photo By: Maria Izzo