Pakistan Business Council (PBC) has proposed the government to take steps for bringing under-invoicing to an end and restoring laws related to group taxation in their initial form in the upcoming budget for the fiscal year 2021-22. In its proposals for the upcoming budget, the PBC has informed the higher authorities that the massive under-invoicing, especially by commercial importers, is destroying domestic industry, as across the board massive under invoicing and dumping of imported products have been increasing. Information regarding values at which various custom check posts clear import consignments is not publicly available. This encourages unscrupulous importers to under-declare the value of consignments to evade government revenues. The PBC proposed that values at which import shipments are cleared through PRAL or CARE need to be publicly available. The government of Pakistan must insist on Electronic Data Interchange (EDI), for both Free Trade Agreement (FTA) and non-FTA imports from China and other major trading partners. In future, the requirement of EDI should be made compulsory for imports from FTA/ PTA and major trading partner countries. The rate of withholding tax on imports for commercial importers should be at least 2 percent higher than what it currently is and the Withholding tax should be considered as an adjustable advance tax. Valuation ruling should be issued in consultation with brand owners, i.e. who have valid registration of the brands under relevant intellectual property laws. Similarly, the PBC urged the Federal Board of Revenue (FBR) to restore laws related to group taxation in the initial forms as introduced by the Finance Act 2007 and the Finance Act 2008. The council said that most recently, via Income Tax Laws (Second Amendment) Ordinance, 2021, exemption from the levy of tax on inter-corporate dividend between companies eligible under section 59B of Income Tax Ordinance, 2001 (Group Relief) has been revoked. The PBC proposed that clause 103C of Part I of Second Schedule of ITO, providing exemption from inter-corporate dividends to group companies eligible under section 59B of the ITO, should be reinstated. It suggested that amendments made in Clause 11B of Part IV of Second Schedule via Finance Act 2015 and Finance Act 2016, should be revoked to ensure that exemption from withholding tax is provided on inter-corporate dividends exempt under clause 103A and clause 103C of Part I of Second Schedule of ITO.