Corrective measures to boost FDI: OICCI

KARACHI: The Overseas Chamber of Commerce and Industry (OICCI) has said that corrective measures taken by the government will encourage foreign direct investment (FDI) and improve investment climate in the country.

The chamber in a letter sent to Finance Minister Ishaq Dar on Monday welcomed the government’s decision to take timely action regarding adjustment of input taxes on the payment of sales tax to provinces.

“The deletion of sales tax paid to provinces from the definition of Input tax was one of the most critical irritants in the Finance Act 2016, which caused great anxiety among foreign investors, which could have been easily avoided if the relevant officials had reviewed all aspects of this matter before incorporating it in the Finance Act,” according to the letter.

The OICCI appreciated the personal interest of the finance minister in resolving investors’ issues. The chamber also complimented Haroon Akhtar, who visited the chamber last month, to understand the issue, including its impact on the business entities falling under the tax domains of the Federal Board of Revenue (FBR) and the provincial revenue authorities. The OICCI believed that a continuous government-investor dialogue provides a strong platform for mutual cooperation to improve the investment climate in the country.