Business leaders seek restoration of Final Tax Regime

Published
0
Shipping containers are seen at the Karachi port in Karachi, Pakistan, June 10, 2025. — Reuters
Shipping containers are seen at the Karachi port in Karachi, Pakistan, June 10, 2025. — Reuters

KARACHI: Business leaders have called upon the federal government to avoid repeating policy mistakes that have damaged economic activity, weakened exports, discouraged investment, and undermined industrial competitiveness.

Businessmen Group (BMG) Chairman Zubair Motiwala and Karachi Chamber of Commerce and Industry (KCCI) President Rehan Hanif urged policymakers to incorporate the business community’s recommendations in the budget 2026-27.

In a joint statement, they said that the disappointing outcomes of several fiscal measures introduced over the past two years should serve as a cautionary lesson for policymakers.

They emphasised that many of these measures had been strongly opposed by KCCI well before their implementation. Unfortunately, those concerns were ignored, resulting in adverse consequences for businesses, exports, investment, employment, and revenues.

On the shift of exporters from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR) under the Finance Act 2024, they said the government adopted a short-term revenue approach without considering its long-term impact on exports and economic growth.

They demanded the immediate restoration of the FTR at a one per cent rate for all exporters. They expressed serious concern over the removal of the Export Facilitation Scheme benefits on yarn and fabric, as the scheme had played a critical role in enhancing the competitiveness of the export sector.

Lasbela Chamber

Lasbela Chamber of Commerce and Industry (LCCI) has urged the federal government to introduce comprehensive reforms to taxation, energy, trade, and investment policies in the upcoming budget to stimulate industrial growth, attract investment, and strengthen business confidence.

The chamber said Pakistan’s economic revival depended on creating a competitive and predictable business environment, adding that its recommendations were aligned with the government’s stated objective of promoting industrialisation and generating employment opportunities.

The LCCI called for a multi-year macroeconomic stabilisation framework with clearly defined targets for inflation and fiscal deficit reduction, coupled with a transparent foreign exchange policy to ensure policy consistency and investor confidence.

Published in Dawn, June 9th, 2026

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Kashmir unresolved
Updated 30 Sep, 2026

Kashmir unresolved

The just solution lies in India addressing the issue through a trilateral dialogue involving the legitimate representatives of the Kashmiri people and Pakistan.
Water shortage
30 Sep, 2026

Water shortage

THAT the country is entering the Rabi season with an anticipated water shortage of nearly 25pc, the lowest carryover...
Young hearts
30 Sep, 2026

Young hearts

THE observance may have passed, but the message of World Heart Day should not fade with it. The occasion is a useful...
Terror and politics
Updated 29 Sep, 2026

Terror and politics

There is an urgent need to tone down the rhetoric and tackle terrorism as a collective challenge for both the affected provinces and the federation.
Watching the glaciers
29 Sep, 2026

Watching the glaciers

THE latest signs from Pakistan’s mountains are worrying. Suparco says the number of unfrozen glacial lakes it...
Dangerous agenda
29 Sep, 2026

Dangerous agenda

AS the world remains fixated on the US-Iran conflict, elsewhere in the Middle East, Israel is consolidating its grip...