KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly opposed reports of new taxes being imposed on existing taxpayers in the upcoming federal budget for the fiscal year 2025-26.
FPCCI Vice President has urged the government to refrain from introducing additional taxes on imports, exports, and other sectors to support national trade, industrial growth, and encourage new investments. The organization warned that if the government imposes such taxes under pressure from the International Monetary Fund (IMF), it will actively oppose the measures.
Emphasizing the importance of separating tax policy from tax administration to avoid conflicts of interest, the FPCCI stressed that the budget process should be treated as a strategic economic tool rather than a routine financial exercise. Expanding the tax net to include untaxed and under-taxed sectors was highlighted as a priority, while additional burdens on already compliant taxpayers could have negative consequences.
The Vice President noted that sluggish business activity and struggles faced by the business community mean further tax hikes could reduce revenue collection by encouraging tax evasion. He expressed concerns about recent amendments through Ordinance IV of 2025, particularly sections granting extensive powers to tax authorities, which may violate constitutional rights and undermine investor confidence.
Proposals included developing a harmonized General Sales Tax (GST) structure with a unified compliance portal and gradually reducing the GST rate to 12% to lower costs and stimulate growth. The FPCCI also called for reforms in Pakistan Customs, identifying outdated laws, tariff segmentation, under-invoicing, and enforcement weaknesses as critical issues.
Finally, the organization appealed to the Prime Minister to release the pending Rs23 billion subsidies related to additional electricity consumption and ensure proper allocation of these funds in the 2025-26 budget.
