Business Recorder
ISLAMABAD: Islamabad Industrial Estate President Omais Khattak has described the current tax system as complex, saying it hampers industrial growth and discourages exports and investment. He urged the government to introduce a single- window National Sales Tax Compliance System, restore the Final Tax Regime, abolish the Super Tax, and reduce corporate tax rates. Presenting his budget proposals, he said that single-window digital platform is a modern and indispensable reform. If an integrated system for registration, tax filing, and payment is established nationwide, it can ease business operations, reduce tax evasion, and provide the government with better data. Several countries worldwide, especially Singapore and the UAE, are already benefiting from such integrated digital tax models. He said Pakistan’s corporate income tax is higher than the global average. It currently stands at around 29 percent, whereas in most countries the rate ranges from 21 percent to 24 percent. If the government brings corporate tax for the manufacturing sector down to 25 percent in the budget, it could lead to an increase in investment, industrial output, and employment. He said up to the last budget, the super tax rate was 1 percent, but an additional 4 percent burden has now been added. This could directly impact the export sector, which is already facing high energy costs, expensive financing, and tough competition in the global market. The budget needs to reduce the additional tax burden. Super tax has also become a persistent headache for industrialists. This tax, imposed temporarily, now appears to be taking a permanent form, which could affect both production costs and investment, he said. He added that a key aspect of the new budget could be a cashless economy. A large portion of Pakistan’s economy still operates on cash transactions, which keeps billions of rupees of activity outside the tax net, placing an additional burden on those already registered in the tax system. By incentivising consumers through digital economic technology and fintech cards, and encouraging people to shift from cash to digital payments, more people can be brought into the tax net. If the budget offers consumers a specific rate of discount or reward at the retail level, it could not only help boost the economy but also widen the tax base. He said the country is currently facing multiple economic challenges, but there are also emerging sectors that could give the national economy a new direction. One of these is the blue economy, or marine economy. Pakistan’s fish and seafood exports have crossed USD 500 million for the first time. A key factor in this has been the opening of the Russian market, which has created new avenues for Pakistan’s seafood products. Further incentives could encourage this sector. Currently, rising global oil and gas prices have impacted economies worldwide, he said, adding in Pakistan, prices have increased by nearly 60 percent. In these circumstances, exploring local oil and gas reserves can help bring energy prices down. In areas like Dhok Sultan in Attock, production of around 1,400 to 2,100 barrels per day is obtained from a single well. One well in the Soghri Block is producing 14 million standard cubic feet of gas daily. Pakistan Petroleum has also made a major discovery in Attock. By increasing investment in Attock, the government can secure more oil and gas reserves, which could help reduce the country’s energy crisis. There is also evidence of oil and gas reserves in Badin, Sanghar, Ghotki, Dadu, Khairpur, Karak, Hangu, Bannu, Chakwal, Jhelum, Mianwali, Sibi, Dera Bugti, Quetta, and Kalat. Investment in these areas could also yield positive results, he concluded. Copyright Business Recorder, 2026
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