FPCCI Urges Reversal of Taxation Measures in Federal Budget

Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), represented by its President Atif Ikram Sheikh, has called for the removal of stringent taxation measures from the Finance Bill 2025-26. Sheikh emphasized the need for a fiscal policy that fosters business growth and investment as the nation’s economy stabilizes.

Sheikh argued that effective tax collection must involve industrialists and exporters through comprehensive consultations. He expressed concern that the current budget fails to align with the Prime Minister’s vision for export-led growth.

Highlighting issues with the Finance Bill, Sheikh warned that granting extensive discretionary powers to tax authorities could harm business confidence and lead to harassment and corruption. He advocated for minimizing human interaction in tax collection to maintain fairness and transparency.

Despite his criticism, Sheikh acknowledged positive developments such as the reduction in super tax, rationalization of tax slabs for salaried individuals, and increased defense spending. These measures align with longstanding demands from FPCCI.

FPCCI’s Senior Vice President, Saquib Fayyaz Magoon, called for the restoration of the fixed tax regime for exporters to ensure clarity and consistency in taxation policies. Magoon criticized the imposition of an 18% sales tax on raw materials, warning it could harm competitiveness in international markets.

Magoon also expressed disappointment over the government’s neglect of FPCCI’s recommendations for special incentive packages for the IT, Mines and Minerals, and Fishing industries, which he described as potential high-growth sectors.