Business Recorder
KARACHI: Chairman Businessmen Panel Progressive (BMPP) and Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Saquib Fayyaz Magoon, has urged the government to present an export-led and tax-base broadening budget for 2026-27, saying supportive policies for industry and exporters could significantly boost foreign exchange earnings while expanding the tax net would generate sustainable revenue without imposing additional burdens on existing taxpayers. Talking to media at the Karachi Press Club here on Thursday, June 4, 2026, BMPP leaders also called for a major shift in the upcoming federal budget towards export-led growth, tax reform and relief for the manufacturing sector, saying the focus should be on reducing the cost of doing business and expanding the tax base rather than overburdening any single sector. On the occasion, FPCCI Vice Presidents Amanullah Paracha and Asif Sakhi, and former Vice President Shabbir Mansha Churra, Shahid Ali, Sheroz Ahmed, Danish Saleem and Abdul Rehman were also present. Magoon also called for the abolition of super tax, reduction in taxes on industrial raw materials and measures to prevent the misuse of tax concessions available in the former FATA and PATA regions. He said the government should focus on expanding the tax net by bringing small traders into the formal economy rather than placing additional burdens on existing taxpayers. “Being a business community representative, we believe that a lower tax rate would encourage a large number of small traders to voluntarily join the tax system, helping broaden the tax base and generate sustainable revenue growth over the long term”. Chairman BMPP demanded the complete abolition of the super tax, stating that if full withdrawal is not possible, at least the manufacturing sector should be exempted to support industrial activity and investment. He stressed that imposing excessive tax pressure on a single sector is not a viable economic strategy. He also urged the government to reduce the GST rate to 15 percent, arguing that a lower and more balanced tax structure would help improve compliance and stimulate economic activity. He also called for the revival of a fixed tax regime and greater facilitation for bringing new taxpayers into the system. He proposed the introduction of a simplified single-form tax return to make filing easier for businesses and individuals, reducing complexity in the existing tax framework. Magoon further emphasized reducing taxes on industrial raw materials, saying it would help lower production costs and improve Pakistan’s export competitiveness. The tax difference between industrial and commercial raw material imports should be eliminated, as the current gap is contributing to the misuse of flying invoices and causing losses to the national exchequer. He said the FPCCI’s budget proposals prioritize the export sector, stressing that enhancing exports is essential for addressing Pakistan’s economic challenges. He also called for restoring confidence among exporters by ensuring that tax policies, including the final tax regime, are framed in consultation with stakeholders. Expressing concern over the proposed tax revenue target of Rs15,200 billion, Magoon said the figure appears unrealistic and detached from ground realities. He noted that similar overambitious targets were set in the previous fiscal year and later revised downward. He further stated that growth targets for all sectors should be set in consultation with relevant industries, warning that unilateral policy-making leads to uncertainty and weak implementation. Chairman BMPP said individuals earning up to Rs100,000 per month should be exempted from income tax, while the minimum wage should be increased by up to 15 percent to provide relief to workers amid rising living costs.Calling for sector-specific relief measures, he urged the government to provide substantial tax concessions to the chemical industry to enhance its competitiveness and contribution to exports. Magoon proposed the introduction of a simplified fixed-tax scheme for small traders. Under the proposal, the minimum annual fixed tax would be set at Rs25,000, while the turnover tax rate would be capped at 1.5 percent with at least five-year exemption from the audit. Mansha said the budget should not be driven by revenue or tax targets alone; instead, it should be growth-oriented and focused on expanding the economy. “There is little benefit in setting inflated tax targets, adding that revenue goals should be based on economic capacity and developed through consultation with exporters and the business community”, he added. Asif Sakhi urged the government to engage registered market associations, trade bodies and trader organizations across the country as supporting partners in implementing the initiative.He emphasized that the upcoming budget should prioritize economic growth and export expansion, arguing that supportive policies for industry and exporters could significantly increase foreign exchange earnings and strengthen Pakistan’s economy. Amanullah Paracha said without broadening the tax net, Pakistan’s economy cannot grow, and the tax system must be simplified so that the business community can comply without fear or undue pressure. Copyright Business Recorder, 2026
Go to News Site