Karachi, April 19, 2025 – The Institute of Cost and Management Accountants of Pakistan (ICMAP) has put forward a significant tax reform proposal, calling for the imposition of a 10% tax on high-income pensioners as part of its budget recommendations for the fiscal year 2025-26.
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KCCI Urges Waiver of Factory Visit for Tax Exemption Certificates
Karachi, April 18, 2025 – The Karachi Chamber of Commerce and Industry (KCCI) has strongly recommended that the Federal Board of Revenue (FBR) waive mandatory factory visits for the issuance of income tax exemption certificates, citing disruptions to business operations and inefficiencies caused by the current procedures.
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FBR Urged to Shift Exporters into Regular Income Tax Regime
Karachi, April 18, 2025 – The Federal Board of Revenue (FBR) has been strongly advised to incorporate exporters into the regular income tax regime, in a move aimed at strengthening tax collection, broadening the tax base, and promoting equity in the national tax system.
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ICMAP Proposes 3.5% Tax on Social Media Platform Earnings
Karachi, April 17, 2025: The Institute of Cost and Management Accountants of Pakistan (ICMAP) has proposed the introduction of a 3.5% tax on earnings generated from social media platforms, as part of its comprehensive tax proposals for the federal budget 2025–26.
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KCCI Urges Tax Relief for Foreign Exchange-Earning Businesses
Karachi, April 17, 2025 — The Karachi Chamber of Commerce and Industry (KCCI) has called on the government to exempt foreign exchange-earning businesses from provincial taxation, aiming to promote economic stability and protect vital inflows into Pakistan’s economy.
In its comprehensive tax proposals for the 2025–26 budget, the KCCI highlighted a critical concern: businesses that generate foreign exchange—such as Indenting Agents, Buying Houses, and similar service-oriented operations—are already subject to federal taxation. Since foreign exchange earnings directly influence Pakistan’s national reserves and macroeconomic policies, they are traditionally governed by federal laws. However, KCCI emphasized that some provincial authorities have also started imposing taxes on the same income, creating jurisdictional overlaps and undermining the principle of unified taxation.
The KCCI warned that this dual taxation structure discourages businesses from bringing their foreign exchange earnings into the country. “Over-taxation increases the operational burden and disincentivizes the repatriation of valuable foreign exchange into Pakistan, thereby weakening our external account position,” stated a KCCI spokesperson.
Moreover, the KCCI pointed out that high tax liabilities at both federal and provincial levels reduce business competitiveness, especially when compared to regional players operating under more favorable regimes. Businesses may opt to park their foreign exchange earnings offshore, reducing liquidity in the domestic market and putting further pressure on Pakistan’s already strained foreign exchange reserves.
To address these challenges, the KCCI has proposed a targeted exemption from provincial taxes for businesses that earn and remit foreign exchange into Pakistan. The Chamber stressed that such a measure would reduce tax overlap, enhance the ease of doing business, and encourage compliance.
“The objective is to build a transparent and business-friendly framework that encourages entrepreneurs to keep their foreign exchange earnings within Pakistan,” the KCCI noted. “This will not only support a stable exchange rate but also help boost investor confidence.”
By aligning tax policies with national economic goals, the KCCI believes the government can create a more predictable and growth-oriented environment for foreign exchange-generating enterprises.
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ICMAP Proposes Tax Framework to Support EV Industry Growth
Karachi, April 17, 2025 — The Institute of Cost and Management Accountants of Pakistan (ICMAP) has urged the government to adopt a supportive taxation framework for Electric Vehicle (EV) manufacturers, as part of its tax proposals for the federal budget 2025-26.
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Tax Exempt Salary Income May Be Raised to Rs800,000 in Budget
Islamabad, April 16, 2025 – In a move aimed at providing much-needed relief to the salaried class, the federal government is reportedly considering increasing the salary tax exemption threshold from the current Rs600,000 to Rs800,000 in the upcoming 2025-26 budget.
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P@SHA Recommends Continuation of Final Tax Regime
Karachi, April 16, 2025: The Pakistan Software Houses Association (P@SHA) has urged the federal government to extend the Final Tax Regime (FTR) for the IT and IT-enabled services (ITeS) sector for another 10 years, emphasizing its critical role in maintaining growth momentum, attracting foreign investment, and supporting Pakistan’s digital economy.
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FPCCI Outlines Key Proposals for Budget 2025–26
Karachi, April 16, 2025 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday presented a comprehensive set of proposals for the upcoming federal budget 2025–26, calling it a decisive opportunity to shape the nation’s economic trajectory.
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KCCI Recommends Advance Tax Exemptions on FMCGs
Karachi, April 15, 2025 – The Karachi Chamber of Commerce and Industry (KCCI) has urged the government to exempt fast-moving consumer goods (FMCGs) from advance tax collection under Sections 236G and 236H of the Income Tax Ordinance, 2001.
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