FPCCI opposes new taxes in budget
The organization has urged the government to refrain from introducing new taxes on imports, exports, and other sectors in order to promote national trade, industrial growth, and to encourage new investments.
The FPCCI warned that if the government imposes additional taxes under pressure from the IMF, the FPCCI will actively oppose such measures.
FPCCI Vice President Muhammad Aman Paracha emphasized the need to separate tax policy from tax administration to avoid conflicts of interest.
He further suggested that the budget-making process should not be treated merely as a routine financial exercise but should be transformed into a strategic economic tool.
Aman Paracha stressed the importance of expanding the tax net to include all untaxed and under-taxed sectors, noting that imposing additional taxes on those who are already compliant would have adverse effects.
He highlighted that business activity is already sluggish and the business community is struggling to stay afloat. Imposing further tax burdens on existing taxpayers could lead to decreased revenue collection as it would open more avenues for tax evasion.
He also expressed concerns over amendments introduced through Ordinance IV of 2025, particularly Sections 138(3A), 140(6A), and 175C, stating that these amendments grant excessive powers to tax authorities and violate Articles 4, 18, and 77 of the Constitution. He warned that such changes would significantly erode investor confidence.
Paracha proposed the development of a harmonized structure for General Sales Tax (GST), featuring a unified compliance portal. He recommended gradually reducing the GST rate to 12% to lower business costs for the formal sector and stimulates economic growth.
He also called for comprehensive reforms in Pakistan Customs, identifying outdated laws, tariff segmentation, under-invoicing, and weak enforcement as major challenges. He underscored the need for economic policy to strike a balance between revenue requirements and industrial development, especially through measures that boost Pakistan's export potential and attract investors.
Finally, Muhammad Amaan Paracha appealed to Prime Minister Shehbaz Sharif to immediately release the long-pending Rs23 billion subsidies related to additional electricity consumption and ensure that funds for this are allocated in the upcoming 2025-26 federal budget.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Not in favour of expelling any member: Punjab assembly speaker
LAHORE: Speaker of the Punjab Assembly Malik Muhammad Ahmad Khan has said that he is not in favour of expelling any member from the House. However, under Articles 62 and 63 of the Constitution, it is the constitutional right of the petitioners to have their applications decided within 30 days. He made it clear that if these applications are not resolved within the stipulated time, they will automatically be forwarded to the Election Commission. Addressing a press conference at the Punjab Assembly Media Hall, S Malik Ahmad Khan said that he believes in the supremacy of the Constitution and has always strived to run the Assembly according to the rules and regulations. He emphasised that despite being one of the strongest critics of Articles 62 and 63, it is his constitutional duty to implement them in light of the Supreme Court's rulings. The Speaker said that the opposition had been given every possible democratic space in the past— from chairing standing committees to leading the Public Accounts Committee— but unfortunately, it turned the Assembly into a forum for constant disruption. He noted that the opposition is portraying disorder as a political right, but there is no such provision in the Constitution. Parliament is meant for legislation, not protest. If there is disruption during the Order of the Day, proceedings will move forward as per the law. He further said that the Leader of the Opposition, after consulting constitutional expert Salman Akram Raja, claimed that the Speaker does not have the authority to send a reference. However, the judgment by Justice Asif Saeed Khosa in the Panama Papers case clearly establishes that if members violate their oath, the Speaker must either make a decision or refer the matter to the Election Commission. The speaker categorically stated that he does not believe in the politics of disqualifying anyone, as practiced by Pakistan Tehreek-e-Insaf. However, if anyone violates constitutional boundaries or undermines the discipline of the House against party decisions, he will not hesitate to take action. He added that he holds no grudge against any party or leader but is committed to upholding the sanctity of the House. 'Any member who violates their constitutional oath will inevitably face action.' The Speaker stated that such actions in the past have laid the foundation for undermining democracy in Pakistan. 'I do not politicise disqualification,' he said, 'but if a reference is received under Article 63 (2) of the Constitution, it must be decided accordingly.' He hoped that the government and opposition will engage in meaningful dialogue in the coming days to improve the atmosphere of the House, so that the Punjab Assembly can truly serve as the representative forum of the 120 million people of the province. Copyright Business Recorder, 2025
Business Recorder
2 hours ago
- Business Recorder
ANP denounces Jirga system restoration
PESHAWAR: Awami National Party (ANP) central spokesman Engineer Ihsanullah strongly denounced the federal government's decision to restore the Jirga system, calling it an unconstitutional and regressive step that undermines provincial autonomy, justice, and democracy. The party central spokesman Engineer Ihsanullah in a statement here on Monday stated that the decision was a direct attack on provincial autonomy and an attempt to impose a tribal system on the entire province of Khyber Pakhtunkhwa. He argued that the 25th Constitutional Amendment, which merged FATA with Khyber Pakhtunkhwa, was a historic step towards integration and however, restoring the Jirga system undermined this integration. The ANP spokesman highlighted that the judiciary and judicial system were provincial subjects under the 18th Amendment. The federal government's move to impose Jirgas on Khyber Pakhtunkhwa was seen as a violation of these powers. The party's leader pointed out that Jirgas had historically been used to deny justice to women, children, and minorities, and to impose informal punishments, which was against the principles of justice and equality enshrined in the Constitution. He reminded that the Supreme Court had already declared Jirgas and their punishments illegal in a 2020 judgment. The party demanded that the federal government respect this ruling. ANP demanded immediate dissolution of the committee formed to oversee the restoration of the Jirga system. The party insisted that any reforms or changes in the judicial system should be done in consultation with the Provincial Assembly. ANP suggested modernizing district courts to provide timely justice to rural areas and establishing special judicial benches for women and minorities. ANP viewed the restoration of the Jirga system as a regressive step that would push Khyber Pakhtunkhwa back into a dark age. The party vowed to oppose this decision in every forum and reaffirmed its commitment to building a modern, just, and constitutional province. Copyright Business Recorder, 2025
Business Recorder
4 hours ago
- Business Recorder
Business community opposes 37A and 37AA of ST Act: FPCCI
KARACHI: Saquib Fayyaz Magoon, Acting President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI)has briefed the participants federal budget conference that it is not possible to abide by the provisions contained in the Sales Tax Act 1990; such as e-invoicing and e-bilty for each and every consignment. He informed that the sentiment of the business community is unanimously against the newly introduced provisions of 37A and 37AA of the Sales Tax Act 1990 – stating that the honourable taxpayers of Pakistan are not criminals and shouldn't be treated that way. It seems that FBR has failed to achieve the tax collection target; and, the taxation matters are now seem to be resolved by arresting the already registered and law-abiding taxpayers and to put them behind the bars unfairly, he added. Federal budget conference held to highlight technical issues in the federal budget 2025 – 26; along with recommendations and pragmatic solutions for their swift redresses. The conference was attended by multi-sectoral trade bodies, associations and chambers from across Pakistan physically and online in a large number. Notably, there was also senior representation from FBR and PRAL. Asif Sakhi, VP FPCCI, reiterated that trade and industry is ready to cooperate with the government in its efforts to collect taxes in an honourable manner; but, not at the cost of self-esteem and dignity of the taxpayers. Nasir Khan, VP FPCCI, highlighted that, in the present scenario, the country seems to be rudderless in its economic policymaking; and, this lack of effective governance may lead to unrest – and, we, as businessmen, are presently left with no option than to shut down our factories to avert losses, he added. Haji Muhammad Afzal, senior member FPCCI, added that FBR failed to check the unregistered sales and such businesses shouldn't be allowed to operate who represent unregistered persons or entities. Umar Rehan, Chairman of Pakistan Vanaspati Manufacturers Association (PVMA), said that aforesaid provisions contained in the budget may result in closure of multiple industrial sectors. We are with the government for its commitment to digitalization; but, in presence of the current budgetary provisions, it is impossible to cooperate with the FBR. We cannot cut invoices in cash amounting more the 2 lacs under the prevailing circumstances; where, cash is not considered a banking instrument. Towel Manufacturers Association maintained that our businesses are going through losses at the moment; and, we are being labelled by the government as thieves. Our neighbouring countries are taking advantage of the current situation and taking away our export customers. The business environment has now reached a point that international buyers are asking whether we are shifting our businesses to Dubai or somewhere else. Representatives from LNG Association expressed their concerns regarding provisions of SRO 709(I)/2025 of Sales Tax; and, shared that the setup required to make e-invoicing facility available has high installation charges for which the sector is not ready. It is further revealed during the discussion that a lockup sort of setup is being built in the relevant RTOs and that is causing harassment in the business community. Representatives from Pakistan Security Agencies Association said that they tried to contact PRAL authorities several times; but, they don't know how to proceed further in respect of procedure to integrate the system of taxpayers to the PRAL setup – and, informed that FBR portals are not ready to cater to the provisions. Zubair Bilal, Chief Commissioner, IR, Large Taxpayers Office (LTO) Karachi, assured FPCCI of his diligent consideration of the technical points raised collectively from the apex platform of FPCCI and agreed on a continued, inclusive and result-oriented consultative process with the business community. Copyright Business Recorder, 2025
