LCCI opposes proposed changes under National Tariff Policy
LAHORE: President of Lahore Chamber of Commerce and Industry Mian Abuzar Shad has strongly opposed the proposed changes under the draft National Tariff Policy 2025–30 presented by the Engineering Development Board.
Terming the measures as 'anti-industry,' the LCCI president warned that the new policy could have serious repercussions for Pakistan's industrial base, trade balance and economic sovereignty.
The LCCI president said that while reforming the tariff regime is important, the current proposal is likely to increase Pakistan's reliance on imports, shifting the country further away from a manufacturing-driven economy. He said that by substantially lowering import duties and eliminating Additional Customs Duty (ACD), Regulatory Duty (RD), the government risks transforming Pakistan into an import-dependent economy.
Mian Abuzar Shad further warned that lower tariffs will lead to a surge in imports, thereby putting immense pressure on the current account and foreign exchange reserves, which are already under stress. 'Pakistan cannot afford such a liberalisation at the cost of macroeconomic stability,' he emphasized.
The LCCI also criticised the proposed tariff spread of 0% to 15% as too narrow to reflect the developmental needs of a diverse industrial landscape.
'Even globally competitive and specialized economies such as China maintain a much wider tariff spread to protect sensitive sectors. This narrow spread will blur the line between manufacturers and importers, discouraging local production,' said the LCCI president.
The LCCI president also warned that these changes will result in revenue losses for the government while exacerbating the public debt burden.
'The expected drop in customs revenue will need to be compensated through indirect taxation or further borrowing, both of which will hurt the economy.'
Pointing to the already high cost of doing business in Pakistan, the LCCI emphasised that this move will further deter industrial growth.
'Our industries are already burdened by high energy tariffs, inefficient labor markets and a complex tax regime. These tariff reductions could lead to shutdowns and job losses,' the president added.
The LCCI urged the government to reconsider this premature rationalisation and engage in meaningful consultation with industry stakeholders to develop a tariff structure that supports both industrialisation and exports.
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
5 hours ago
- Business Recorder
PEA seeks LCCI's help to protect emerging digital economy
LAHORE: Pakistan E-Commerce Association (PEA) has sought help of the Lahore Chamber of Commerce and Industry for support in mitigating the potential damage to the e-commerce ecosystem because of new taxation policies. In a meeting with the LCCI President Mian Abuzar Shad, the PEA delegation shared industry apprehensions and emphasized the urgent need for collaborative efforts to protect Pakistan's emerging digital economy. Former LCCI President Muhammad Ali Mian, delegation members Shahbaz Siddique, Imran Haider also spoke on the occasion while LCCI Executive Committee members Khurram Lodhi, Amina Randhawa and Rana Muhammad Nisar were also present. The PEA delegation apprised the LCCI President that the sudden introduction of complex taxation measures has caused widespread unrest among stakeholders in the e-commerce industry. They said that the government's recent policy changes were implemented without prior consultation and have created confusion due to vague legal definitions. This has raised fears of operational uncertainty among online sellers and marketplaces. They said that the requirement for mandatory registration for GST, Sales Tax and Income Tax, even for small and home-based businesses, will place an undue compliance burden on micro-entrepreneurs and discourage new entrants from participating in the digital economy. Moreover, the imposition of a higher withholding tax on Cash on Delivery (COD) transactions, compared to digital payments, was described as discriminatory and counterproductive to the government's stated goal of promoting digital transactions and financial inclusion. The delegation members said that the absence of stakeholder dialogue has left the industry unprepared to deal with these changes, which are being enforced without a clear roadmap. They also expressed concern over the lack of clarity in the definitions of key terms such as 'platforms' and 'intermediaries,' which could result in inconsistent enforcement and further confusion in the market. LCCI President Mian Abuzar assured full support to digital entrepreneurs and startups. He said that government policy-making must be inclusive, well-informed and designed in consultation with relevant stakeholders to ensure fairness and sustainability. He stressed the need for urgent dialogue between tax authorities and the digital business community to resolve these issues amicably. He proposed that clear and precise definitions should be introduced for terms like 'platform,' 'intermediary,' and 'seller' to eliminate ambiguity. He also called for the introduction of revenue-based exemption thresholds for small and home-based businesses so that they are not forced into unnecessary compliance. He emphasized that there should be a uniform tax treatment for COD and digital payments to avoid disincentivizing digital adoption. He further suggested that a transparent and efficient refund mechanism for advance tax deductions should be established to relieve financial pressure on businesses. He also highlighted the importance of allowing a transition period of at least two to three months for the smooth implementation of any new taxation policy. He said that educational programs and awareness campaigns should be launched to help businesses understand their tax obligations and successfully adapt to digital systems. Both LCCI and PEA agreed on the urgency of the matter and resolved to work collectively to ensure that government policies support the growth of e-commerce, encourage digital innovation and protect the interests of small businesses. The proposal to hold a joint press conference at the LCCI was welcomed by the Chamber, which reaffirmed its role as a bridge between the business community and policymakers. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business Recorder
LCCI, PPH agree to enhance bilateral trade with African countries
LAHORE: The Lahore Chamber of Commerce & Industry and Pakistan Products House have signed a Memorandum of Understanding aimed at enhancing bilateral trade, industrial collaboration economic cooperation between Pakistan and African countries. The MoU was formally signed by LCCI President Mian Abuzar Shad and Managing Director of Pakistan Products House Shahid Sajjad Hussain. LCCI Executive Committee Members Khuram Lodhi and Ahsan Shahid were also present on the occasion. Under the agreement, both organizations will work together to strengthen business-to-business cooperation and expand economic linkages based on mutual interests. The MoU also outlines the exchange of business reports, research studies, market surveys, magazines, newsletters other trade-related information to enhance mutual understanding of market dynamics and policy frameworks. The two sides have agreed to jointly organize B2B meetings, trade exhibitions, seminars, conferences other trade-related events to build strong connections between the business communities of Pakistan and Africa. Speaking at the signing ceremony, LCCI President Mian Abuzar Shad said that the agreement marks a significant step forward in boosting Pakistan's exports and promoting 'Made in Pakistan' products in emerging African markets. He noted that Africa presents vast untapped potential for Pakistani industries such collaborations can unlock new trade opportunities. Shahid Sajjad Hussain, Managing Director of PPH, said that Pakistan Products House, established in six key cities across Africa, serves as a robust platform for showcasing high-quality Pakistani products. He said that the MoU will provide Pakistani exporters with enhanced access to new markets and buyers. This strategic partnership is expected to open new doors for Pakistan's business community looking to establish or expand their footprint in Africa. It is anticipated that this collaboration will not only boost exports but also strengthen bilateral economic ties between Pakistan and African nations. Copyright Business Recorder, 2025
Express Tribune
a day ago
- Express Tribune
LCCI for addressing Gulf visa challenges
Listen to article President of the Lahore Chamber of Commerce & Industry Mian Abuzar Shad has urged the government to take immediate and concrete diplomatic steps to resolve the mounting challenges in the issuance of business and labour visas by the United Arab Emirates, Dubai and Saudi Arabia. The LCCI president said that continued delays and restrictions in visa issuance are causing serious disruptions to trade, investment and workforce mobility, which is affecting Pakistan's overall economic prospects in the region. He expressed deep concern over the growing number of complaints being received from businesspersons, exporters, investors and human resources who are facing significant obstacles in obtaining visas from these countries, which have traditionally been among the country's most important trade and labour partners. He said that the business community is suffering due to the lack of access to key Gulf markets where Pakistan has deep-rooted commercial and labour ties. These restrictions are not only causing distress to our entrepreneurs but also harming the nation's economic interests abroad. He strongly urged the federal government to immediately initiate high-level diplomatic dialogue with the concerned countries to resolve these issues on an urgent basis. Shad said that thousands of Pakistani businesses operate in these regions and that a significant portion of Pakistan's foreign remittances and exports are linked to the Gulf market. In light of this, any hurdles in the issuance of business and labour visas would not only dent Pakistan's economy but could also affect the development of host countries that benefit from skilled Pakistani labour and investments.
