FPCCI informs PM about businesses’ concerns

By Our Correspondent
June 16, 2024
The image released on Jan 15, 2024 shows President of the FPCCI Arif Ikram Sheikh at an event. — Facebook/atifikramsheikh

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has informed Prime Minister Shehbaz Sharif about the concerns of the business community regarding the FY25 budget.

Advertisement

In a letter to the PM sent on Saturday, President of the FPCCI Arif Ikram Sheikh expressed gratitude for the reduction in industrial electricity tariffs by Rs10.69 per unit.

“This decision is a testament to your dedication to fostering industrial growth and addressing the concerns of the business community,” Sheikh said.

The FPCCI acknowledges the government’s efforts in formulating a comprehensive budget under the challenging economic conditions while simultaneously highlighting how the budget proposal will impact exporters. As the primary representative of Pakistan’s trade and industry, the FPCCI has sought the immediate intervention of the PM in taxation adjustments for exporters. The shift from a fixed 1.0 per cent withholding income tax to the standard tax regime for exporters will lead to complexities that may deter SMEs due to increased bureaucratic engagements with the FBR, said the letter.

“The proposed withdrawal of sales tax exemption on local supplies to registered exporters could destabilize the supply chain and undermine the EFS, which is pivotal for surpassing export targets,” the president said in the letter adding that the new Section 25AB regarding tax fraud penalties raises concerns over potential misuse, leading to unwarranted harassment and deterring investment.

“The FPCCI is committed to supporting the government’s tax objectives, broadening the tax base, and enhancing economic documentation. We are in the process of thoroughly reviewing the budget and request an opportunity for dialogue, preferably immediately after Eidul Azha, to enhance mutual trust and collaboration between the industry, FBR, and government.”

According to Sheikh, the PM’s leadership is pivotal in addressing concerns promptly to safeguard the country’s exports.

Advertisement