ISLAMABAD: The Special Investment Facilitation Council (SIFC) on Thursday claimed that Pakistan’s high corporate taxes are discouraging foreign direct investment (FDI), while the Federal Board of Revenue (FBR) emphasised that any adjustments must be tied to improved compliance to offset a potential revenue loss of Rs1.6 trillion.

This emerged during a two-day economic dialogue hosted by the Pakistan Business Council, during which SIFC National Coordinator Lt. Gen. Sarfraz Ahmed acknowledged concerns raised by business leaders about high corporate tax rates.

In response, FBR Chairman Rashid Mahmood Langrial emphasised that any revision in tax rates would depend on improved tax compliance to mitigate potential revenue losses.

Agreeing with a questioner’s concern during the discussions, Mr Sarfraz acknowledged that the effective corporate tax rate in Pakistan can reach up to 50 per cent. “Who would invest in such an environment?” he asked, noting the........

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