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Business Recorder
3 days ago
- Business
- Business Recorder
Federal Budget termed detrimental to industry
KARACHI: Former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and former Senior Vice President of the Karachi Chamber of Commerce and Industry (KCCI), Muhammad Hanif Lakhani has opposed the taxation of petroleum products, arguing that it would adversely affect the general public. Lakhani also expressed disappointment over the State Bank of Pakistan's decision to maintain the policy rate at a high 11%, calling it overly cautious and a negative move that is inappropriate given the declining inflation and weakening industrial competitiveness. He termed the Federal Budget 2025-26 as detrimental to the industry. He criticized the government for granting Federal Board of Revenue (FBR) officers the powers equivalent to a Station House Officer (SHO), essentially allowing them unchecked authority. Additionally, he said the imposition of an 18% tax on the IT sector is an ill-advised decision. Lakhani pointed out that the federal budget contains numerous anomalies that the Ministry of Finance must rectify. He urged the government to withdraw harsh and anti-business tax measures before the Finance Bill is passed in Parliament. He warned that granting such strict powers to the FBR in the name of increasing tax collection will make it extremely difficult to achieve the set tax targets. He also criticized the government for not reducing the interest rate, which he believes should have been brought down to 7%, especially when inflation has declined. He stated that decisions are not being made based on ground realities. Lakhani also highlighted the absence of a policy for alternative energy sources. Instead, the government imposed an 18% sales tax on solar panels, which will increase their prices. Furthermore, he opposed the imposition of taxes on e-commerce transactions, noting that unemployed youth were earning through e-commerce, and the government should either provide jobs or not take away their means of livelihood. He did, however, support the move to bring non-filers into the tax net and stated that the imposition of a 10% sales tax in FATA and PATA is a positive step that will benefit the government and curb smuggling. Copyright Business Recorder, 2025
Business Recorder
11-06-2025
- Business
- Business Recorder
Corporate tax rate issue: OICCI disappointed over limited govt progress
KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has expressed disappointment over the government's limited progress in addressing inequitable corporate tax rate in the recent budget. It said while the marginal reduction in Super Tax rates is acknowledged, OICCI reiterates the urgent need for a comprehensive overhaul of tax structures to enhance Pakistan's competitiveness and attract foreign investment. The Chamber also notes the absence of meaningful reductions in government expenditure, which could have helped narrow the budget deficit. Fiscal discipline remains critical to ensuring macroeconomic stability, and OICCI urges the government to prioritize expenditure rationalisation in its budgetary measures. OICCI regrets the government's missed opportunity to broaden the tax base in the current budget, particularly the absence of any concrete strategy to document Pakistan's substantial Rs. 9 trillion cash-based informal economy - a critical measure for meaningful revenue enhancement and economic formalization that the Chamber has consistently advocated for OICCI welcomes several positive reforms, including simplified tax returns for salaried individuals and small businesses, the nationwide rollout of e-invoicing, and the expansion of POS systems, all measures long advocated by the Chamber. However, their success hinges on effective implementation, and OICCI stresses the need for transparency and consistency in execution. The increase in the tax exemption threshold for salaried individuals (from Rs. 0.6 million to Rs. 1.2 million) and the reduction in their tax rate (from 5 percent to 1 percent) are commendable steps that align with OICCI's recommendations but still fall short of providing impactful and necessary relief to reduce ongoing brain drain in the country. OICCI also acknowledges the government's gradual phasing out of tax exemption on FATA and PATA and the government's stricter measures against non-compliant taxpayers, including restrictions on property and vehicle purchases, asset transfers abroad, and enhanced penalties. Such actions are crucial for improving tax compliance and broadening the revenue base. Despite these advancements, the budget falls short of introducing transformative policies for the corporate sector. OICCI emphasises that gradually rationalising tax slabs and reducing the overall tax burden on businesses are essential to promoting a more investment-friendly environment. Copyright Business Recorder, 2025
Business Recorder
11-06-2025
- Business
- Business Recorder
Key economic sectors: LCCI disappointed over lack of broader relief
LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) acknowledged some positive measures in the federal budget 2025-26 but expressed disappointment over the lack of broader relief for key economic sectors. Following Finance Minister Muhammad Aurangzeb's budget speech, LCCI leaders addressed a press conference, stating that while some of their demands were met, the business community had expected more substantial measures to stimulate investment, industrial growth, small and medium enterprises (SMEs), and agriculture. LCCI President Mian Abuzar Shad, along with Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, and former office-bearers including Mian Anjum Nisar, Muhammad Ali Mian, Ali Hussam Asghar, and Faheem ur Rehman Sahgal, shared their insights on the budget. A significant number of executive committee members and market association presidents also attended the conference. Mian Abuzar Shad noted that the increased defense budget was a necessary step but argued that further increments should have been made. He welcomed relief measures for the construction sector and appreciated the higher allocation for water projects, though he stressed that even greater funding was needed given current challenges. Shad highlighted that the LCCI's long-standing demand for simplified tax returns had been accepted. While the super tax was reduced, he described the cut as insignificant and called for a more substantial reduction. He praised the imposition of taxes on the Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA), a measure the LCCI had long advocated for. He pointed out that 45 government entities are being merged or abolished but emphasized the need to divest all loss-making public sector enterprises. Other positive steps included tax reductions in the real estate sector, lower duties on property transactions, the establishment of Daanish University, and measures to curb sales tax evasion. Bringing e-commerce into the tax net was also commended as a good decision. However, Shad expressed concern over under-invoicing and Afghan trade, which he claimed had cost Pakistan Rs. 25 trillion over the past 15 years. He also criticized unchecked petroleum imports for negatively impacting foreign exchange reserves. Additionally, he voiced disappointment over the absence of specific measures to support SMEs. Engineer Khalid Usman criticized the budget for lacking a clear growth strategy. He stated that the minor tax relief for salaried individuals was insufficient and called for further reductions. He also argued that taxing petroleum products would discourage the documented economy. Copyright Business Recorder, 2025
Business Recorder
10-06-2025
- Business
- Business Recorder
Missed Opportunity: OICCI slams Budget FY26 for ignoring informal economy
The Overseas Investors Chamber of Commerce and Industry (OICCI), representing over 200 of the largest foreign investors in Pakistan, has expressed disappointment over the government's limited progress in addressing the 'inequitable corporate tax rate' in the recent budget. 'While the marginal reduction in Super Tax rates is acknowledged, OICCI reiterates the urgent need for a comprehensive overhaul of tax structures to enhance Pakistan's competitiveness and attract foreign investment,' the chamber said in a statement on Tuesday. Finance Minister Muhammad Aurangzeb announced Pakistan's federal budget 2025-26 'for a competitive economy' on Tuesday, targeting a modest 4.2% growth for the coming fiscal year, compared to 2.7% expected in the outgoing FY25. OICCI's budget proposals — balancing reform with reality The chamber also noted the 'absence of meaningful reductions' in government expenditure, which could have helped narrow the budget deficit. The chamber urged the government to prioritise expenditure rationalisation in its budgetary measures. 'OICCI regrets the government's missed opportunity to broaden the tax base in the current budget, particularly the absence of any concrete strategy to document Pakistan's substantial Rs9 trillion cash-based informal economy - a critical measure for meaningful revenue enhancement and economic formalisation that the chamber has consistently advocated for,' it added. On the other hand, OICCI acknowledged positive reforms, including simplified tax returns for salaried individuals and small businesses, the nationwide rollout of e-invoicing, and the expansion of POS systems. 'However, their success hinges on effective implementation, and OICCI stresses the need for transparency and consistency in execution,' it said. OICCI said that the increase in the tax exemption threshold for salaried individuals, from Rs0.6 million to Rs1.2 million, and the reduction in their tax rate, from 5% to 1%, 'are commendable steps that align with OICCI's recommendations but still fall short of providing impactful and necessary relief to reduce ongoing brain drain in the country'. The chamber noted that the government's gradual phasing out of tax exemption on FATA and PATA and the government's stricter measures against non-compliant taxpayers, including restrictions on property and vehicle purchases, asset transfers abroad, and enhanced penalties, are crucial for improving tax compliance and broadening the revenue base. 'Despite these advancements, the budget falls short of introducing transformative policies for the corporate sector,' it said. OICCI emphasised that gradually rationalising tax slabs and reducing the overall tax burden on businesses are essential to promoting a more investment-friendly environment.
Time of India
06-06-2025
- Business
- Time of India
Govt to push Brand UP at PATA meet in Bangkok
L ucknow: The UP govt will showcase the state's tourism potential at the upcoming Pacific Asia Travel Association (PATA) 2025 meet, scheduled to be held in Bangkok from Aug 26-28. An official said: "The event will serve as a powerful platform for UP to project itself as an attractive destination for both international tourists and investors. This will elevate the tourism potential and economy of the state to new heights." Officials said that the tourism department will showcase UP's cultural, spiritual and historical richness through a beautifully designed 36-square-metre stall, highlighting major attractions such as Sarnath, Kushinagar and Shravasti under the Buddhist Circuit, as well as Varanasi, Ayodhya and the Prayagraj Mahakumbh. The stall will be equipped with LED wall screens and auto-navigation displays, offering dynamic visuals of the state's scenic tourist spots, they said. "An augmented reality (AR) based digital touch panel will allow visitors to take selfies with the stunning backdrops of six major destinations in UP. Guests will also get to explore the rich tradition of local handicrafts and the 'One District One Product' initiative," they said. The exhibit will feature creative displays of historic temples, their unique architecture and spiritual significance, offering visitors a deep glimpse into UP's rich religious and cultural legacy. The govt will also organise a one-day international roadshow in Bangkok. This roadshow is expected to draw over 100 stakeholders, including travel traders, travel media and influencers. The event will also include a showcase of photos, films and promotional materials. To amplify its global reach, the UP govt will air 30-second tourism ads during peak hours for three days on three major TV and three radio channels in Thailand. Additionally, 10 key locations in Bangkok will display the promos 15 times a day over three days. Digital screens will also support brand visibility. Visitors to UP's pavilion will be welcomed with exceptional hospitality and engaging experiences. The stall will offer refreshments, including drinking water, tea, and coffee. To provide deeper insights into the state's tourism offerings, brochures, maps and PR kits will be distributed. "The state's grand participation in PATA Bangkok 2025 will serve as a powerful platform to showcase its Buddhist, spiritual and cultural legacy to international tourists and investors," officials said, adding that the event is expected not only to boost tourism but also to open new avenues for investment, strengthening the state's economic growth. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
