Any New Type of Wealth Tax Will Be Detrimental to Economy Suleman Chawla, Acting President FPCCI

Karachi (PR): Mr. Muhammad Suleman Chawla, Acting President FPCCI, has apprised that the business, industry and trade community is worried over the news that some sort of renamed wealth tax is being considered to be imposed to fulfill the never-ending, anti-business conditionalities of international financial institutions (IFIs). We have time and again maintained that business, trade, commercial and economic activities should be rewarded not discouraged, he added.

Mr. Suleman Chawla explained that wealth or asset-value-tax on movable assets or property cannot be levied on savings, investments, working capital, stock-in-trade, equity holdings and capital assets of businesses. Otherwise, it would be counterproductive and result in contraction of documented or formal-sector due to excessive taxation as it will equate to disincentive to taxpayers, he added.

Mr. Muhammad Suleman Chawla stressed that no retrospective tax on personal or business income, assets and properties can be justified as it tantamount to discrimination against those who have performed well for the country and its economy through industrial production, commercial activities, exports, employment generation and revenue mobilization.

Mr. Chawla highlighted that the only pragmatic and sustainable approach to generating more taxes is incentivizing trade & industry in the country to help them generate more business and economic activities; instead of demotivating and causing flight of capital to those countries which give them free land, civic infrastructure, affordable amenities like electricity & gas and exemplary law & order environment.

Mr. Suleman Chawla also criticized the continued imposition of super tax; which is targeting the productive sectors of the economy through further taxing the already taxed. FPCCI has always advocated the broadening and simplification of the taxation system as the time has come when you can no longer further squeeze the active tax filers.

Mr. Suleman Chawla demanded that Section 4C of the finance bill should be abolished to put an end to the rumors of any new form of wealth tax in the offing through making it clear that the government appreciates the ones who generate economic activity in the country.

He added that it is pertinent to note that businessmen pay all forms of taxes already – whether on their businesses, personal income or properties. Therefore, it is futile and unacceptable to make them pay discriminatorily higher & unfair taxes.