Sialkot, June 14, 2025 – The Sialkot Chamber of Commerce and Industry (SCCI) has strongly urged the federal government to restore the Final Tax Regime (FTR) for exporters and incorporate this demand into the upcoming Finance Act, 2025.
In its post-budget recommendations for the fiscal year 2025–26, the chamber emphasized the importance of FTR as a simple and predictable taxation mechanism crucial for promoting exports and easing the compliance burden on businesses.
In a detailed communication to the Ministry of Finance, the Sialkot Chamber expressed serious concerns over proposed amendments presented in the Finance Bill 2025, especially those that may adversely impact exporters. The chamber recommended either full restoration of the FTR or making it optional alongside the Normal Tax Regime (NTR), giving exporters the flexibility to choose the regime that best suits their operational needs.
The chamber also called for reinstating the time limitation under Section 122(9) of the Income Tax Ordinance, 2001, to ensure legal certainty in tax matters. It proposed enhancing the turnover threshold for small and medium enterprises (SMEs) under the 14th Schedule, thereby allowing more businesses to benefit from simplified taxation rules.
One of the most pressing concerns raised by the Sialkot Chamber was the increased audit exposure of exporters. It recommended a five-year audit exemption under Section 177 for exporters, arguing that consistent compliance by exporters should be rewarded rather than penalized with frequent audits. The chamber also demanded withdrawal of controversial amendments in Sections 21 and 22 related to disallowances in tax computations.
On the sales tax side, the chamber opposed proposed changes in the definition of “fraud” under Section 2 of the Sales Tax Act, 1990, and called for the withdrawal of new provisions under Sections 37A and 37AA, which it believes could lead to harassment of genuine taxpayers.
In relation to customs reforms, the Sialkot Chamber urged the government to restore the Export Facilitation Scheme (EFS) to its original structure, which previously provided critical support to export-oriented industries.
The chamber concluded by stressing that Sialkot, being a key export hub, must be facilitated through stable and exporter-friendly fiscal policies to maintain its contribution to Pakistan’s economy.