Lahore Chamber of Commerce and Industry has proposed the restoration of a simpler and predictable Final Tax Regime (FTR) for exporters in the upcoming federal budget 2026-27.
The proposals were discussed during a meeting between Rashid Mahmood Langrial, Chairman of the Federal Board of Revenue, and Faheem-ur-Rehman Saigol.
According to an LCCI spokesperson, the meeting focused on taxation, industrial challenges and budget proposals aimed at improving the business environment in Pakistan.
FBR promises facilitation for business community
During the meeting, Rashid Mahmood Langrial informed the LCCI president that he would visit Lahore Chamber before the announcement of the federal budget to brief the business community on the evolving role of the FBR.
“In its new role the FBR will facilitate the business community to the maximum,” the FBR chairman assured.
He added that the tax authority would focus on supporting businesses while ensuring effective implementation of tax policies.
Chamber highlights industrial challenges
Faheem-ur-Rehman Saigol briefed the FBR chairman on major issues faced by trade and industry and presented detailed recommendations for the federal budget.
The chamber stressed the need to reduce the cost of doing business, which it said remains significantly higher than competing regional economies.
LCCI also criticized frequent issuance of SROs and changing tax interpretations, saying policy uncertainty had become a major factor behind de-industrialization.
Key proposals for exporters and traders
The Lahore Chamber proposed the restoration of a simple Final Tax Regime for exporters to improve predictability and ease of doing business.
The chamber also recommended the introduction of a fixed tax regime for traders to help broaden the tax base.
Among other proposals, LCCI called for:
• Sector-wise tariff structures to protect local industries
• Uniform tariff and tax treatment across all regions, including FATA and PATA
• Gradual removal of advance taxes
• Shifting taxation toward the sales stage to simplify the system
Export facilitation and skills development emphasized
To prevent misuse while supporting genuine exporters, the chamber proposed strengthening the Export Facilitation Scheme (EFS) through real-time data sharing and post-clearance audits.
The business body also urged the government to diversify exports and support value-added industries and capital goods sectors.
LCCI further recommended declaring a vocational training emergency and introducing industry-linked, skills-focused programs to improve workforce capabilities.
The chamber also stressed promoting IT, digital services and modern industrial skills to support economic growth.
Tax disparity on processed food highlighted
The Lahore Chamber urged the government to address the 18 percent sales tax disparity on packaged dairy and meat products.
According to the chamber, the current taxation structure discourages hygienic processed food products, while untaxed unpackaged products continue to dominate the market.
The chamber also proposed allowing third-country trade transactions through regulatory reforms by the State Bank of Pakistan.