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Business Recorder
12 hours ago
- Business
- Business Recorder
Tax officials' new powers: FPCCI mulling moving the court
KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has unequivocally rejected the new powers granted to tax officials in the recently announced Federal Budget, branding them as 'excessive, overly-subjective, and harassment-prone.' During a press conference in Karachi, FPCCI leadership announced their intention to challenge these authorities in superior courts, specifically those enabling taxmen to withdraw funds from business accounts and conduct raids on business premises without prior notice. The FPCCI leadership urged the federal government to withdraw these stringent measures before the budget's final passage from parliament to restore confidence within the business community. FPCCI President Atif Ikram Sheikh emphasized that tax collection targets can only be met if industrialists and exporters are actively engaged through a comprehensive consultative process. He lamented that the budget largely overlooks the necessary steps to empower the business community to realize the Prime Minister's vision for export-led growth. Sheikh further elaborated on a globally established principle: increased intervention or interaction by tax collectors with taxpayers tends to undermine fairness, transparency, and impartiality, as heightened human-to-human interactions and subjective human judgments become a source of nuisance. Saquib Fayyaz Magoon, Senior Vice President of FPCCI, demanded the restoration of the Fixed Tax Regime (FTR) for exporters in its original form and for a long-term duration. This, he argued, is crucial for bringing clarity, certainty, and consistency to taxation policies, thereby attracting both Foreign Direct Investment (FDI) and domestic investment by ensuring Pakistan remains competitive as a country. Magoon also highlighted the necessity of broadening the Export Facilitation Scheme (EFS) to include local manufacturers, warning that without such inclusion, Pakistani products would face supply line disruptions and a lack of competitiveness in regional and international markets. He further expressed resentment that the FPCCI's recommendations for special incentive packages for the high-growth Information Technology, mines & minerals, and fishing industries were disregarded in the Federal Budget. FPCCI Vice President Asif Sakhi urged tax authorities to cease accusing the business community of tax evasion or theft. Instead, he called for a transformation of the tax machinery into a facilitative body that engages with taxpayers through amicable and respectful behaviour. During the press conference, FPCCI Vice President Aman Paracha proposed the formation of a high-powered fact-finding committee to ascertain the root cause of the FBR's inability to achieve the tax collection target for fiscal year 2025. Vice President Nasir Khan highlighted a concerning trend, stating that many businessmen have already relocated to more lucrative and stable investment, trade, and industrial destinations, while those remaining are struggling to operate their factories without incurring losses. Another concern raised by the FPCCI was the restriction imposed on Special Economic Zones (SEZs) developers for a period of 10 years or until tax year 2035, whichever comes first. Copyright Business Recorder, 2025
Business Recorder
14-05-2025
- Business
- Business Recorder
Trade, industry needs long-term, trade policy: FPCCI
KARACHI: Atif Ikram Sheikh, President FPCCI; President ECO-CCI and VP CACCI, has explained that trade and industry of country needs a long-term, reliable and facilitative trade policy to enable export growth in both conventional and non-conventional sectors of the economy. He was speaking to the opening session of FPCCI's Export Advancement Conference. He apprised that the passionate participation of diverse industries and sectors in FPCCI's Export Advancement Conference is a testimony to the fact that all sectors want to grow in the export markets – provided they are given an enabling, incentivizing and encouraging environment to operate. It is pertinent to note that Faiz Ahmad Chadhar, Chief Executive, TDAP, visited FPCCI to grace FPCCI's Export Advancement Conference as the Chief Guest. CE TDAP informed the conference that his institution believes in a robust and ongoing consultative process with the stakeholders in trade and industry; and, rigorous research and planning activities are being undertaken on a sectorial basis to support the recommendations and queries. Saquib Fayyaz Magoon, SVP FPCCI, presented the resolution at the culmination of FPCCI's Export Advancement Conference. The key demands of trade & industry are: The country needs to have a long-term Export & Industrial Policy for a period of 20 years. Role of Pakistan's Trade & Investment Officers (TIOs) should be more active and result-oriented to make them tangibly deliver support to export promotion. FPCCI demands that the previously implemented Fixed Tax Regime (FTR) should be restored for exporters. Additionally, a fixed withholding tax (WHT) of 1.25% should be levied to streamline it or 1.5% WHT can be levied; but, in that case, 0.25% EDS should be abolished. Export Facilitation Scheme (EFS) should be made available to local manufacturers and 18% tax on the supplies of local manufacturers should be abolished with immediate effect. Free Trade Agreements (FTAs) should be signed with countries where not in place to encourage exploration of new markets. Banking Channels in Africa should be established to enable trade with them. Women Entrepreneurs should be supported from the platform of TDAP to foster micro, small and medium enterprises (MSMEs) and promote a culture of inclusivity. Mines & Minerals; IT and Processed Foods should be encouraged as these sectors can grow exponentially vis-à-vis their current export volumes. Copyright Business Recorder, 2025
