Industry welcomes tax relief, decries neglect of energy, SMEs

HSATI, HCSTSI say budget overlooks power costs, infrastructure and small businesses

HYDERABAD:

Guardedly appreciating certain tax relief measures of the federal budget 2026-27, Hyderabad SITE Association of Trade and Industry (HSATI) has lamented omission of energy sector reforms, neglecting small industries and re-development of industrial zones as serious shortcomings.

The HSATI's Chairman Zubair Ghangra, Senior Vice President Aamir Shahab and Vice President Esar Kumar emphasised in a joint statement on Saturday that more measures were required for the country's real economic needs, industrial development, employment promotion and export expansion goals.

Ghangra observed that decrease in the cost of industrial raw materials and machinery through reduction in customs duty, additional customs duty and regulatory duty under the National Tariff Policy 2025-30 is a positive step.

He noted that measures like relief on agricultural machinery, reduction in withholding tax on exports, extension of incentives for IT exports and partial reduction in super tax will help improve the investment climate but these measures are insufficient for real industrial revival.

He contended that while high income groups have been provided relief in the budget, the overall economic impact of this move will be limited.

"The business community feels most vulnerable to high energy prices, expensive loans and unstable production costs, but the budget has not presented any comprehensive strategy to address these fundamental problems."

He underlined that it is high time to reduce the prices of electricity and to ensure uninterrupted supply of gas, but the government has not come up to the expectations on both the counts. Ghangra bemoaned that the industrial zones of Sindh, including Hyderabad division, are confronted with basic infrastructure problems but the successive budgets have failed to address these impediments to industrial productivity.

Senior Vice President Aamir Shahab said the country's economy is already saddled with debt repayments and the new budget has come with a big fiscal deficit, suggesting a continuity in the reliance of debts.

Vice President Asar Kumar said without industrial development, neither employment can be created nor exports can increase.

The Hyderabad Chamber of Small Traders and Small Industries (HCSTSI) though welcomed economic and tax reforms in the federal budget 2026-27, it deplored that the small and medium enterprises and small industries have been ignored.