ISLAMABAD: The Overseas Investors Chamber of Commerce and Industry (OICCI) on Tuesday opposed any tax amnesty scheme and access of banking records to tax authorities.

Instead, the chamber urged the government to reduce income and sales tax rates and abolish super tax in the upcoming budget to encourage tax culture and investments in the country.

Speaking to the media after meeting with the authorities regarding the upcoming budget, OICCI President Khalid Mansoor and Chief Executive Officer Abdul Aleem said a key challenge to Pakistan`s struggling foreign investment is the tendency to keep policies and decisions in wraps.

The OICCIofhce bearersfurthersaidthe government should ensure full disclosure of ChinaPakistan Economic Corridor (CPEC) and other initiatives.

Responding to a question, Mr Aleem said tax amnesty schemes were a source of discouragement to honest taxpayers and never produced desired results in Pakistan. He said the government had introduced `Super Tax` as a one-off measure and was extended for another year. Such extensions are disturbing particularly for foreign investors, he added.

He said the government should honour its commitment to abolish the Super Tax. `If not, this should be properly made part of the income tax and be spread across the board,` he added.

He said the rates of corporate and sales tax must be reduced and aligned to regional countries averaging12-13 per cent instead of 20 and 17pc respectively in Pakistan.

The OICCI, representing about 192 foreign investors from 37 countries operating in Pakistan, also proposed revamping of withholding tax regime from current 55 rates to just 5 rates and incentives for new investments to be made part of every budget. It recommended timely coordination oninter-provincialissueslike the Workers Welfare Fund (WWF) and Worl(ers Profit Participation Fund (WPPF) jurisdiction and tax deductibility (input output tax adjustments) be clarified.

Likewise, the minimum tax regime should be rationalised particularly for large value but low margin businesses likeOilMarketingCompanies.

For long term, the chamber proposed that tax policies should ensure a10 year phasing out period so that local and foreign investors could base their plans on policies which are predictable and consistent over a reasonable time and feedback of the Largest Tax Contributors should be taken before finalisation of the Finance Act.

Saying the critical challenge of expansion in tax base was still a major issue and growth in tax collections over and above the projected growth from the organised sector should be based on broad-ening the tax base and bringing new tax payers into the tax net. Income and sales tax refunds should be processed and settled expeditiously.

Mr Mansoor said Pakistan needed a more focused approach to introduce growth oriented economic policies, more aggressive and result oriented taxation and trade policies to boost documentation of the economy, encourage longer term investment by both local and foreign investors, including setting up of export oriented industries.

It should also develop an effective private public partnership forum to help harness the significant potential of the country which has so far remained a dream rather than the reality.

The OICCI representatives also shared results of bi-annual Business Confidence Survey that indicated a downward trend in business confidence.

Mr Mansoor said that though the inflows of Foreign Direct Investment (FDI) to Pakistan has increased by 12.4pc to $1.6 billion during first nine months of 2016-17 compared to $1.425bn in the corresponding period of the last fiscal year, it remains very low and not even one per cent of the country`s GDP.