The federal government is currently evaluating a proposal to extend significant tax relief to the tobacco sector in the forthcoming federal budget for the fiscal year 2025–26. Industry representatives have reportedly submitted two key demands: the creation of a third excise duty tier with a lower rate of Rs 2,525 per 1,000 cigarette sticks, and a reduction in the current federal excise duty (FED) from Rs 5,050 to Rs 3,800 per 1,000 sticks.
(more…)Category: Trade & Industry
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Gem and jewellery exports grind to halt amid SRO suspension
Karachi, May 14, 2025 – Pakistan’s once vibrant gem and jewellery export sector has come to an abrupt standstill following a recent and unexpected move by the federal government.
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LCCI urges PM to withdraw FBR SROs impacting cement sector
LAHORE, May 13, 2025 — The Lahore Chamber of Commerce and Industry (LCCI) has strongly urged the Federal Board of Revenue (FBR) to withdraw two recently issued statutory regulatory orders (SROs) — SRO 578(I)/2025 and SRO 709(I)/2025 — which have sparked serious concern within the cement distribution sector.
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Russia to establish new steel mill in Karachi to boost bilateral ties
Islamabad, May 13, 2025 — In a significant step toward enhancing economic cooperation, Russia and Pakistan have agreed to establish a new steel mill in Karachi, reinforcing their growing bilateral relationship.
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Pakistan set to begin mango exports for 2025 season on May 25
Islamabad, May 13, 2025 — Pakistan is gearing up to begin its mango exports for the 2025 season on May 25, as announced by the Ministry of Commerce.
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Pakistan may abolish sales tax on cotton in 2025-26 budget
Islamabad, May 13, 2025 — The government of Pakistan is considering a significant tax reform by planning to abolish the 18% sales tax on locally produced cotton in the upcoming federal budget for 2025-26.
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SAI urges withdrawal of Tax Laws (Amendment) Ordinance 2025
Karachi, May 10, 2025 — The SITE Association of Industry (SAI) has issued a strong appeal to Prime Minister Shehbaz Sharif, demanding the urgent withdrawal of the recently promulgated Tax Laws (Amendment) Ordinance 2025, warning that the new legislation poses a significant threat to both economic stability and constitutional norms.
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Foreign tobacco giants urge Aurangzeb to reform duty structure
Islamabad, May 9, 2025 – Major international tobacco companies have urged Finance Minister Muhammad Aurangzeb to reform Pakistan’s excise duty framework in order to combat illicit trade, increase tax revenue, and stabilize the formal tobacco sector.
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OICCI advocates broadening tax base to achieve 15% tax-to-GDP
ISLAMABAD, May 9, 2025 — The Overseas Investors Chamber of Commerce and Industry (OICCI) has urged the government to prioritize broadening the tax base in the upcoming budget for FY2025-26, stating that this is essential to achieving a sustainable tax-to-GDP ratio of 15%.
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OICCI recommends gradual phasing out of minimum turnover tax
Karachi, May 9, 2025 – The Overseas Investors Chamber of Commerce and Industry (OICCI) has proposed a structured, three-year phase-out of the minimum turnover tax, citing its detrimental impact on businesses operating on slim profit margins.
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