KARACHI:
Industrialists have urged the government to expand the tax base instead of introducing new taxes that burden honest taxpayers, including businesses and the salaried class.
They also called for separating the agencies responsible for tax collection and for introducing new taxes. This would ensure that registered taxpayers aren’t unfairly targeted whenever the revenue target isn’t met, preventing the practice of imposing new taxes on existing payers instead of bringing new taxpayers into the fold.
Additionally, they suggested linking the salaries and privileges of Federal Board of Revenue (FBR) officials to their performance and ability to meet tax collection targets.
Masood Pervaiz, President of the SITE Superhighway Association of Industries (SSHAI), said the government should prioritize expanding the taxpayer base and generating capital to boost overall revenue, rather than placing more tax burdens on industries and businessmen.
He criticized the government for imposing additional taxes on those already contributing to the national economy, while at the same time increasing its own luxurious expenditures, such as luxury cars and imported goods.
Pervaiz emphasized the need to reduce utility costs to make Pakistani products more competitive globally, especially since Pakistan has some of the lowest labor costs in the world.
He urged that the budget for 2025-26 should be designed with the public’s welfare in mind. Tax targets should be realistic and based on the actual revenue potential of the government, rather than ambitious figures that ultimately burden taxpayers. He also highlighted the importance of supporting industrial and manufacturing sectors to boost exports, rather than relying on manpower exports that deplete the country’s talent pool.
Muhammad Farooq Shaikhani, former president of the Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), said the federal budget should address the challenges faced by small and medium enterprises (SMEs) and traders in Hyderabad. Given the significant contribution of SMEs to the national economy, he called for inclusive, growth-oriented policies.
Shaikhani urged the FBR to replace coercive tactics with facilitation-based reforms, such as simplified tax procedures, reduced turnover taxes, and an end to harassment, which would boost business confidence. He proposed a unified, trader-friendly tax system supported by digital one-window operations to broaden the tax net without intimidation.
He also requested funds to establish new industrial zones in Hyderabad, noting that despite its potential, the city still lacks modern infrastructure. Upgrading areas like SITE with basic utilities and roads would encourage investment and job creation.
He further demanded targeted subsidies on electricity and gas for industries, warning that without affordable energy, small industries cannot survive. Pakistan’s exports, he said, need more support through simplified refund processes, export incentives, and participation in global trade events.
Shaikhani also called for SME financing schemes, revival of sick industrial units, and a one-time amnesty for undocumented businesses. He stressed that the budget should be business-centric, and assured that Hyderabad’s traders are willing to support the government’s economic revival efforts—if their concerns are addressed.
Syed Raza Hussain, spokesperson for the Federal B Areas Association of Trade and Industries (FBATI), said that the next budget should include business-friendly policies to boost industrial production and exports in the long run.
He emphasized the need to improve the business climate, reduce production costs, promote ease of doing business, and offer tax incentives and low-interest financing to industrialists.
Hussain called for withdrawing tax policies that damage the trust of industrialists, which discourage both local and foreign investment—especially critical as the country faces military tensions with its arch-rival.
He also proposed involving all stakeholders in developing a comprehensive plan to boost tax revenues and exports, attract investment, and create jobs across various manufacturing sectors.Tools
