Islamabad: In pre-budget consultations with the Senate Standing Committee on Finance and Revenue, business leaders from across Pakistan voiced strong concerns over complex tax structures, delayed refunds, and the lack of support for small, export-oriented, and women-led enterprises. Chaired by Senator Saleem Mandviwalla, the committee met with representatives from key chambers of commerce to gather proposals for the 2025–26 Federal Budget.
Jawed Bilwani, President of the Karachi Chamber of Commerce and Industry (KCCI), criticized tax incentives in the former FATA region, arguing they have distorted the tea import market due to lower duties. He also flagged misuse of tax exemptions on plastic raw materials, particularly polyethylene, which importers resell at inflated prices. Bilwani further complained about sales tax refunds, stating businesses often wait up to nine months despite the FBR’s 72-hour refund claim. He noted that advance tax payments continue to raise the cost of doing business. Senator Mandviwalla acknowledged the FBR’s earlier statements and assured the matter would be addressed.
Chambers from Lahore and Gujranwala raised concerns about the 1% advance tax on exports and an additional 1% on remittances, collected by the State Bank. They urged the government to review and rationalize the export tax regime to support competitiveness.
The Sialkot Chamber of Commerce highlighted legal challenges for smaller businesses, noting that current thresholds prevent appeals in cases involving less than Rs. 20 lakh in sales tax or Rs. 10 lakh in income tax. The chamber also stressed the importance of fostering young entrepreneurship, reporting that 600 to 700 new businesses are registered annually in the region.
From Rawalpindi, the RCCI proposed a simplified 15% General Sales Tax across sectors and performance-linked tax incentives for exporters. RCCI President Usman Shaukat also called for improved financial assistance to small and medium enterprises (SMEs) to stimulate growth in key industries.
The Islamabad Women Chamber of Commerce and Industry (IWCCI) requested a reduced corporate revenue threshold for women-led businesses, arguing that the current Rs. 5 crore limit excludes many promising ventures from formal tax benefits. They also urged the allocation of dedicated funds to promote women entrepreneurs in the upcoming budget.
In a separate appeal, the Paper and Stationery Association demanded the full removal of taxes on stationery items. The association reminded the committee of the federal government’s earlier pledge to abolish these levies and underscored the impact on students and educational access.
The meeting was attended by Senators Sherry Rehman, Anusha Rahman Ahmad Khan, Faisal Vawda, and representatives from chambers in Karachi, Lahore, Gujranwala, Sialkot, Faisalabad, Rawalpindi, and the IWCCI.
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