Karachi: Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Tuesday, organized an interactive roundtable session focused on the transition to a cashless economy and measures to facilitate and fast track the adoption of digital means.
High-profile stakeholders from key federal and provincial government institutions including State Bank of Pakistan, Federal Board of Revenue and Sindh Revenue Board, and multi-sectoral private-sector representatives and key stakeholders from the business community attended the session held here at the Federation House Karachi, President FPCCI, Atif Ikram
Sheikh informed in a statement issued here.
The primary objective of the session was to develop coordinated incentives for digital payments; including possible tax incentives and cashbacks or discounts, Atif Ikram Shaikh stated, adding that discussions centered on utilizing these measures to encourage documented transactions, improve tax compliance, and expand the formal economy.
Embracing a cashless economy was no longer optional but it is an urgent imperative for Pakistan’s economic growth, he explained, adding ‘Transitioning away from cash is the most effective way to ensure transparency, lower the cost of doing business, and integrate our markets globally.”
Head of Financial Inclusion Support Department (FISD) of SBP, Ghulam Muhammad Phul, emphasizing the central bank’s role, reiterated SBP’s commitment to facilitate a secure and robust digital payment infrastructure.
Chief Commissioner, RTO, FBR, Zafar Rafique, stated that digitalization was key to broadening the tax-base. FBR was actively exploring viable tax incentives for digital transactions to reward documented businesses, improve overall tax compliance, and sustainably expand the formal economy, he added.
Chief Commissioner, IR Hyderabad, FBR, Sajjad Akbar, maintained that the government authorities value the cumulated and aggregated feedback of the business community of Pakistan.
Senior Member of SRB, Abdul Hameed Memon, highlighted that Sindh Government was already incentivizing digital payments at restaurants as those were charged at 8% sales tax as compared to 15% on cash payments.
SVP FPCCI, Saquib Fayyaz Magoon, highlighting the strong consensus among stakeholders, stressed on fostering a collaborative environment to bridge the gap between traditional practices and digital solutions. Terming incentivization as the key to adopting a cashless economy, he reiterated the FPCCI’s stance that embracing documentation, digitalization, and taxation should come with facilitation to ensure sustainable expansion of the tax base.
Chairman of Policy Advisory Board (PAB-FPCCI), Mian Zahid Hussain, stressed that by introducing targeted tax relief for digital merchants and other coordinated and tangible incentives could rapidly accelerate the documentation of the economy and ease the burden on the already taxed and law-abiding formal sectors.
