FPCCI Objects to Tax Changes in Pakistan Budget

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised strong objections to the proposed changes in the federal budget that would shift the tax burden on exporters from a fixed income tax to a 29% tax on profits. This move has caused widespread concern among industry leaders and has been met with criticism from various sectors within Pakistan's export industry.

Industry representatives, including those from textile, pharmaceutical, rice, fruit, vegetable, leather products, and tanners associations, have expressed their apprehensions at a recent press conference organized by the FPCCI. They have warned that the proposed tax measures could lead to increased harassment and corruption by the Federal Board of Revenue (FBR), potentially deterring investors from the country.

The FPCCI Senior Vice President and other industry leaders have urged for the immediate withdrawal of the proposed law, citing concerns about the negative impact it could have on businesses. Failure to reverse this decision may prompt a nationwide consultation with export industries to determine the best course of action moving forward.

Criticism from Industry Figures

Industry figures, such as the Chairman of the Rice Exporters Association, have criticized the timing of the proposal, emphasizing its potential to severely impact exports during an already challenging economic period. They have highlighted that exporters already face significant tax burdens, and the introduction of a 29% tax on exports under the new National Tax Regime could exacerbate the situation.

Telecom Sector Raises Concerns

In a separate development, Pakistan's Telecom Operators Association has expressed concerns over the heavy taxes imposed in the 2024 budget. The telecom sector has warned that unresolved tax issues could lead to foreign investment withdrawal from Pakistan, potentially hindering the country's progress towards a Digital Pakistan.

The telecom operators have requested a meeting with the Committee Chairman to address their concerns and present their perspectives on the tax issues affecting the sector.

Conclusion

The opposition from the business community and the telecom sector highlights the significant challenges posed by the proposed tax changes in Pakistan's budget. The concerns raised underscore the need for careful consideration of the potential impacts on businesses and investments. It is crucial for policymakers to engage with industry stakeholders to address these issues effectively and ensure a conducive environment for economic growth and development.