AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: The Lahore Chamber of Commerce and Industry (LCCI) has presented comprehensive budget proposals to the Senate Standing Committee on Finance and Revenue, emphasizing the need for economic revival and tax reforms in Pakistan. The presentation, led by LCCI’s Senior Vice President Engineer Khalid Usman, outlined key measures aimed at reducing business costs, simplifying regulations, and broadening the tax net.
In his address, Engineer Usman highlighted the critical importance of the Federal Budget 2025-26 for Pakistan’s economic recovery. He urged the government to streamline business procedures and reduce excessive regulations to facilitate industrial growth and trade expansion.
A significant focus of the proposals was on restructuring the tariff system to encourage local value addition. Engineer Usman advocated for a cascading tariff structure, proposing lower duties on raw materials and higher rates on finished products, opposing the Ministry of Commerce’s proposed 0 to 20% tariff regime.
The LCCI also called for exemption of import duties on water treatment plants to enhance environmental compliance. This move, Engineer Usman argued, would aid industries in meeting international standards and strengthen Pakistan’s global market position.
On taxation, the LCCI recommended aligning the Federal Board of Revenue’s (FBR) SME definition with the Small and Medium Enterprises Development Authority’s (SMEDA), suggesting a reclassification that could bring more businesses into documentation. They proposed a simplified tax regime for SMEs and criticized FBR’s recent shifts in exporters’ tax regimes.
Concerns were raised over new reporting requirements under SRO 55(I)/2025, which Engineer Usman claimed led to harassment of the business community. He called for increasing the turnover threshold for withholding agents and criticized actions against foreign assets declared under past amnesty schemes.
Timely tax refunds were emphasized as crucial for maintaining liquidity and boosting investment. Engineer Usman urged adherence to the 72-hour processing window for sales tax refunds, proposing interest on delayed refunds and automated systems for income tax refunds.
Lastly, the proposals advocated for the abolition of the Sindh Infrastructure Development Cess on exporters and continuity in economic policies with a long-term vision. Engineer Usman concluded by reaffirming LCCI’s commitment to collaborating with stakeholders to enhance Pakistan’s economic prosperity.