Islamabad: The Senate Standing Committee on Finance and Revenue, Chaired by Senator Saleem Mandviwalla, held today to initiate consultations with the Chambers of Commerce and Industry for the Financial Budget 2025-26.
MD KCCI, Jawed Bilwani, highlighted the special tax regime in the ex-FATA region and pointed out that a major portion of tea imports is routed through this region due to the significantly lower taxes. He also highlighted the issue of low duties and taxes on the raw materials of the plastic industry, particularly polyethylene for manufacturers. He reiterated that manufacturers import more raw materials due to these low taxes and then sell them at higher prices.
Moreover, he echoed his concerns about the refund of sales tax after nine months, despite the FBR's claims of refunds within 72 hours. He stated that the late refunds and advance taxes have increased the cost of doing business manifold. Senator Saleem Mandviwalla stated that the FBR had admitted before the committee the 72-hour refund policy of sales tax. The Committee decided to take up the matter in the upcoming budget meetings.
The Lahore and Gujranwala Chambers of Commerce and Industry raised the matter of advance tax on exports. They apprised that the State Bank charged one percent tax plus an additional one percent tax on remittances. They proposed the rationalization of the said tax.
Furthermore, Sialkot Chamber of Commerce and Industry highlighted the expulsion of tribunals for matters in which sales tax exceeds up to Rs. 20 lakh and income tax up to Rs. 10 lakh, expressing concern over the lack of proper appellate forums for small taxpayers. The Committee assured the chamber that it would take up the matter in the upcoming budget. Additionally, the Sialkot Chamber emphasized the need to cater to the growing number of young entrepreneurs, with around 600 to 700 new registrations recorded each year, highlighting the importance of supportive policies for this emerging business segment.
Additionally, the Rawalpindi Chamber of Commerce and Industry proposed a 15% GST in the upcoming budget to provide ease to the dying industry. President RCCI, Usman Shaukat, also proposed providing tax incentives to export-based industries upon completion of export targets, in addition to providing necessary financial facilities to small and medium enterprises.
The Islamabad Women Chamber of Commerce and Industry (IWCCI) has urged the government to allocate dedicated funds for women entrepreneurs in the upcoming budget, emphasizing the need to create a more supportive environment for women-led businesses. The chamber also called for the reduction of the existing Rs. 5 crore revenue threshold for corporate women, arguing that the current limit poses a barrier to entry for many capable women entrepreneurs seeking to formalize and expand their businesses.
More Importantly, Paper and Stationery Association called for the withdrawal of taxes on stationery items. They stated that the Federal Government had promised in the previous year to eliminate the existing taxes on stationery items in the following budget cycle. The association urged the government to honor its commitment, stressing that these taxes should be withdrawn immediately to ensure affordability and accessibility of essential educational materials for students across the country.
In attendance were Senators Sherry Rehman,Anusha Rahman Ahmad Khan,Fesal Vawda and Representatives of Rawalpindi,Karachi,Sialkot,Faisalabad and Lahore Chamber of Commerce and Industry.