Pakistan may impose a 10 per cent regulatory duty on bulk export of raw and grey cotton. Another proposal is that sales tax rebates for businessmen should be given in the shape of subsidy on electricity and gas bills. There is a view that tax to GDP ratio at 9.5 per cent was too low and there was a need to bring non-filers into the tax net. Withholding a tax of 0.3 and 0.6 per cent on bank transactions would bring more non-filers in the tax net.

Reduction of taxes on imports is expected to discourage the smuggling of tea and other items. Businesses want a reduction in the sales tax rate in Pakistan. They say it’s too high and leads to tax evasion and other illegal means to avoid it. Since Pakistan’s problems were too many, but resources were few, it was necessary economic issues are resolved in consultation with the business community. Taxation policies, they say, are a major hurdle in promoting exports.

Businessmen in Karachi say they give 65 per cent of the country’s taxes and contribute 25 per cent in GDP but get nothing much in return. Businessmen want an enabling business environment, with a better law and order situation and a corruption-free environment.