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LAHORE, Jun 10 (APP):A number of LCCI’s (Lahore Chamber of Commerce and Industry) demands have been accepted in federal budget for financial year 2025-26.
LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, former presidents Mian Anjum Nisar, Muhammad Ali Mian, former senior vice president Ali Hussam Asghar and former vice president Faheem-ur-Rehman Sahgal disclosed this while addressing a press conference to give their viewpoint on federal budget, soon after the Federal Finance Minister’s speech in the National Assembly, here at LCCI on Tuesday.
A large number of executive committee members and market association presidents were also present.
LCCI President Mian Abuzar Shad stated that the increase in the defense budget was a necessary step, but further increments should have been made. He welcomed relief for the construction sector and appreciated the higher allocation for water projects. He, however, emphasized that even more funds should have been allocated keeping in view current challenges.
He said that the LCCI’s long-standing demand for simplified tax returns had been accepted. While the super tax was reduced, asserting that the cut was insignificant and should have been more substantial.
Abuzar Shad also praised the imposition of taxes on FATA/PATA (Federally/Provincially Administered Tribal Areas), a measure the LCCI had long advocated for.
He mentioned that 45 government entities are being merged or abolished but stressed the need to divest all loss-making public sector enterprises. Other positive steps included tax reductions in the real estate sector, lower duties on property transactions, the establishment of Daanish University and measures to curb sales tax evasion. Bringing e-commerce into the tax net is also a good decision.
The LCCI President said that under-invoicing and Afghan trade have cost Pakistan Rs. 25 trillion over the past 15 years, while unchecked petroleum imports are negatively impacting foreign exchange reserves. He stressed the need for more effective measures for SMEs (Small and Medium Enterprises).
Engineer Khalid Usman said the minor tax relief for salaried individuals was insufficient and urged for further reductions. Taxing petroleum products, he argued, would discourage the documented economy.
Shahid Nazir Chaudhry stated that policies formulated without stakeholder consultation cannot be beneficial.
Mian Anjum Nisar said the budget should have focused on promoting investment. The allocations for industry, agriculture and water resources were low and the issue of cost of doing business should have been resolved in proper manner, while the existing tax base is being overburdened.
Muhammad Ali Mian pointed out that local taxes were not reduced, electricity prices remained unchanged. He also objected the increased discretionary powers of the officials of Federal Board of Revenue (FBR) amid automation of the tax collection mechanism.
Faheem-ur-Rehman Sahgal emphasized that the budget should have been prepared in consultation with the trader community. He added that business community wanted more relief measures to boost investment, industrial growth, small and medium enterprises (SMEs) and the agricultural sector.