• Service: Tax, Global Indirect Tax, Global Mobility Services, International Tax
  • Type: Regulatory update
  • Date: 10/31/2013

Pakistan - Focus on increasing tax revenue, attracting foreign investment 

October 31: A goal of Pakistan’s government is to broaden the tax base and improve the tax-to-GDP ratio by seeking more tax revenue, as well as attracting more foreign investments and encouraging trade.

To implement these goals, Pakistan has entered into income tax treaty agreements, bilateral trade agreements, and free trade agreements with other countries.

Other new features added to Pakistan’s income and indirect tax regimes that are intended to attract investment and to increase tax revenues include:

  • Investor-friendly income tax benefits (e.g., various exemptions and tax credits to attract foreign and local investment)
  • A reduced corporate income tax rate (reduced to 34% from 35%)

Read an October 2013 report prepared by KPMG International: Pakistan - Changes aim to boost foreign investment and tax revenues

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