AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed strong disapproval of the new powers granted to tax officials in the Federal Budget 2025-26. Atif Ikram Sheikh, President of FPCCI, announced the organization’s rejection of what he termed as excessive and subjective powers that allow tax officials to withdraw funds from business accounts and conduct raids without prior notice.
Mr. Sheikh urged the federal government to reconsider these measures before the budget is passed, calling for a consultative process with industrialists and exporters to meet tax collection targets. He stated that the current budget overlooks essential measures for achieving export-led growth, a key objective of the Prime Minister.
Highlighting global practices, Mr. Sheikh emphasized that increased interaction between tax collectors and taxpayers can compromise fairness and transparency due to increased human intervention.
Saquib Fayyaz Magoon, Senior Vice President of FPCCI, called for the restoration of the fixed tax regime for exporters, arguing that long-term clarity and consistency in taxation policies are crucial for attracting foreign and domestic investment.
Mr. Magoon also advocated for expanding the Export Facilitation Scheme to include local manufacturers to prevent supply chain disruptions and enhance competitiveness in international markets.
The FPCCI also voiced frustration over the neglect of its recommendations to offer special incentives for industries like IT, mining, and fishing in the budget. These sectors, according to Mr. Magoon, have significant growth potential.
Vice President Asif Sakhi urged tax authorities to adopt a more supportive approach towards the business community, while Vice President Aman Paracha suggested forming a committee to investigate the Federal Board of Revenue’s failure to meet tax targets.
VP Nasir Khan pointed out the exodus of businessmen seeking stable investment opportunities abroad, highlighting the challenges faced by those remaining in Pakistan.
The FPCCI also criticized the restrictions on Special Economic Zones’ developers, arguing for an extension of the duration to attract substantial foreign and domestic investments. They propose extending the period to 20 or ideally 30 years to ensure viability and growth.