Karachi: Mr. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has expressed his satisfaction on FPCCI hosting a very-well-attended and interactive roundtable session today with high-profile stakeholders from key federal and provincial government institutions, and multi-sectoral private-sector representatives.
Mr. Atif Ikram Sheikh apprised that the roundtable focused on the transition to a cashless economy. The session, held at the FPCCI Head Office, Federation House Karachi, convened key stakeholders from the business community, the State Bank of Pakistan (SBP), the Federal Board of Revenue (FBR), and Sindh Revenue Board (SRB). The primary objective of the session was to develop coordinated incentives for digital payments; including possible tax incentives and cashbacks or discounts. Discussions centered on utilizing these measures to encourage documented transactions, improve tax compliance, and expand the formal economy, he added.
Mr. Atif Ikram Sheikh explained that embracing a cashless economy is no longer optional; it is an urgent imperative for Pakistan’s economic growth. Transitioning away from cash is the most effective way to ensure transparency, lower the cost of doing business, and integrate our markets globally.
Ghulam Muhammad Phul, Head of Financial Inclusion Support Department (FISD), emphasized the central bank’s role; stating the State Bank of Pakistan (SBP) is fully committed to facilitating a secure and robust digital payment infrastructure. We support initiatives that allow FinTech companies to offer cost-effective solutions and consumer incentives – which are vital for widespread digital adoption.
Zafar Rafique, Chief Commissioner, RTO, FBR, aligned with the session’s overarching goals, stated that the FBR recognizes that digitalization is key to broadening the tax-base. We are actively exploring viable tax incentives for digital transactions to reward documented businesses, improve overall tax compliance, and sustainably expand the formal economy, he added.
Sajjad Akbar, Chief Commissioner, IR Hyderabad, FBR, maintained that the government authorities value the cumulated and aggregated feedback of the business community of Pakistan from the apex platform of FPCCI – and, the FBR will incorporate its suggestions.
Abdul Hameed Memon, Senior Member of SRB, highlighted that Sindh Government is already incentivizing digital payments at restaurants as those are charged at 8% sales tax as compared to 15% on cash payments.
Saquib Fayyaz Magoon, SVP FPCCI, highlighted the strong consensus among stakeholders; noting that to bridge the gap between traditional practices and digital solutions, we must foster a collaborative environment where the private-sector and regulators work hand-in-hand. Incentivization is the key to adopting cashless economy – and, it is a long-standing demand of the FPCCI that embracing documentation, digitalization, and taxation system should come with facilitation in order to broaden the tax-net not the other way round, he added.
Mian Zahid Hussain, Chairman of Policy Advisory Board (PAB-FPCCI), stressed that by introducing coordinated, tangible incentives – such as targeted tax relief for digital merchants – we can rapidly accelerate the documentation of our economy and ease the disproportionate burden currently placed on the formal sector as squeezing the already taxed and law-abiding businessmen would not enhance tax-to-GDP ratio any further.
