PCDMA submits budget proposals to FBR

KARACHI, Jun 03 (APP): The Pakistan Chemicals and Dyes Association (PCDMA) on Wednesday submitted budget proposals to be incorporated in the upcoming budget to be presented in National Assembly later this month.

Chairman PCDMA Salim Wali Muhammad urged the Federal Board of Revenue to ease the compliance burden on businesses, cut the General Sales Tax (GST) rate, and restore protections for importers in its pre-budget proposals submitted ahead of the federal budget 2026-27.

PCDMA Chairman Salim Wali Muhammad said that mounting compliance requirements and aggressive audits are steadily driving taxpayers into the informal economy.

He said that the people generally want to pay taxes, but due to limited awareness and tech-savviness they make honest mistakes.

Wali Muhammad said the FBR should adopt a facilitative and educational approach instead of relying on notices and enforcement measures.

Among the Association’s key recommendations is reduction in the GST rate from 18 percent to 16 percent, followed by a gradual transition to single-digit taxation.

The PCDMA chairman also called for the restoration of the Final Tax Regime (FTR) for commercial importers and the return of audit exemptions that were previously linked to the payment of additional sales tax.

On income tax, the PCDMA proposed lowering withholding tax on local supplies of raw materials from the current rates of 5pc and 5.5pc to 2pc and 2.5pc respectively.

He further sought the restoration of NTN-based self-clearance facilities for commercial importers, saying the withdrawal of the facility had increased delays and administrative bottlenecks at customs offices.

PCDMA also recommended discontinuing the Export Facilitation Scheme (EFS), claiming it was vulnerable to misuse and revenue leakage.

The proposals have been submitted to the FBR and are expected to be discussed during pre-budget consultations with trade and industry stakeholders ahead of the federal budget announcement.