Industrialists urge tax reforms
Shaikhani said that the FBR must shift from coercive tactics to facilitation-based reforms. photo: file
Industrialists urged the government to widen its tax network instead of introducing new taxes and discouraging upright taxpayers including businesspeople and the salaried class.
They also demanded that the tax collection body and the body introducing new taxes should be two different organisations so that already-registered taxpayers cannot be pressurised. Once the tax collection target is not notched, new taxes are imposed on existing taxpayers instead of bringing new ones into the tax net.
On top of that, salaries and privileges of Federal Board of Revenue (FBR) officials should depend on their performance and achievement of tax collection targets.
SITE Superhighway Association of Industries (SSHAI) President Masood Pervaiz said the government should focus on capital generation and broadening the taxpayer base to scale up its overall revenue pie rather than increasing taxes on industries and businessmen.
It is contradictory that the government imposes new ways to generate taxes from existing taxpayers, who are already contributing to the national exchequer, while increasing its own luxury expenses, including taxes and imported cars.
To enhance revenues and export receipts, the government should reduce the overall cost of utilities to make Pakistani products more competitive in the international market, especially considering the country has one of the lowest labour costs in the world.
The next budget for 2025-26 should be public-friendly at all costs, and the tax target should be set against the real income of the government rather than an ambitious goal that ultimately burdens taxpayers, he said. The government should focus on promoting industrial and manufacturing sectors to enhance exports, rather than just supporting manpower exports which drain future talent.
Hyderabad Chamber of Small Traders & Small Industry (HCSTSI) former president Muhammad Farooq Shaikhani urged the government to make the upcoming federal budget truly reflective of the ground realities faced by the business community, especially SMEs and traders of Hyderabad. He emphasised that the SME sector, which significantly contributes to the national economy, deserves priority treatment through inclusive and growth-driven policies.
Shaikhani stated that the FBR must shift from coercive tactics to facilitation-based reforms. Simplified tax procedures, a reduction in turnover taxes, and an end to harassment will boost business confidence. A unified, trader-friendly tax system with digital one-window operations should be introduced to widen the tax net without intimidation.
He demanded allocation of funds for establishing new industrial zones in Hyderabad. He pointed out that despite its potential, Hyderabad remains deprived of modern infrastructure. Upgrading industrial areas like SITE with gas, electricity, and roads will encourage investment and job creation.
He also called for targeted subsidies on electricity and gas tariffs for industries. He warned that without affordable energy, small industries cannot survive. He stressed that Pakistan's exports require strong support through simplified refund processes, export incentives, and participation in international trade events.
Shaikhani also asked the government to include SME financing schemes, revival of sick units, and a one-time amnesty for undocumented businesses. He reiterated that the budget must be business-centric and that the traders of Hyderabad are ready to support the government in economic revivalif their voice is heard and respected.
Federal B Areas Association of Trade and Industries (FBATI) spokesperson and eminent industrialist Syed Raza Hussain said the government should introduce business-friendly policies in the next budget to enhance the overall production of industries and exports on a long-term basis.
The government should improve the business climate of the country, including reducing the cost of production, promoting ease of doing business, and facilitating industrialists and businessmen with tax incentives and low-markup financing schemes.
He mentioned that the government should withdraw tax policies that hurt the trust and confidence of industrialists, which are tantamount to discouraging local and foreign investment in the country, especially at a time when the country is engaged in military conflict with its arch-rival.
He said the government should engage all stakeholders in consultations and design a comprehensive mega plan to enhance tax revenues and exports, attract investment, and generate jobs in different manufacturing sectors.