Govt urged to withdraw WHT increase on logistic services

LAHORE: The Lahore Chamber of Commerce & Industry and the Pakistan Goods Transporters Association have jointly urged the federal government to withdraw the increase in withholding tax on logistic services announced in the federal budget 2025–26 and to address other critical issues confronting the transport sector without delay.

Addressing at a joint press conference held at the Lahore Chamber, LCCI President Mian Abuzar Shad said that the increase of withholding tax on logistic services from 4% to 6% is a harsh and unjustified blow to the goods transport sector, which is already struggling for survival. He said that such a move could push the sector to the brink of collapse and demanded that the government immediately reverse the decision and reinstate the previous rate of 4%.

The LCCI president said that the only general truck stand in Lahore, located on Ravi Link Road, has become severely insufficient due to the city’s expanding population and commercial activity.

He urged the Punjab government to allocate land outside the city limits for the establishment of a modern, international-standard truck terminal, which would facilitate the relocation of goods forwarding agencies out of urban areas. This move would help reduce traffic congestion, lower environmental pollution and improve logistic efficiency.

The press conference was also addressed by LCCI Vice President Shahid Nazir Chaudhry, Executive Committee Member Riaz Tajik and leaders of the Pakistan Goods Transporters Association including President Nabeel Mehmood Tariq, Senior Vice President Haji Irfan Sultan and Vice Presidents Muhammad Ahmad Khan, Mirza Arshad Iqbal Baig, Mumtaz Ali Khan, among others. They collectively voiced deep concerns over the mounting challenges faced by the goods transport sector.

The association’s office-bearers strongly criticised the government’s practice of increasing toll taxes every two months, describing it as unbearable for transporters. They added that the establishment of new toll plazas at various locations has opened the door for unjustified extortion, severely impacting the sustainability of transport businesses.

They also condemned the unwarranted fines and harassment by traffic police under the guise of document checks, which, they argued, not only demoralize drivers but also negatively affect operations and reputation. They stressed that transporters are being penalized for minor issues, which adds to the already immense financial burden.

Warning of the dire consequences, they said that the national economy is already under pressure and if immediate steps are not taken to resolve the ongoing issues, transporters would be left with no option but to shut down their operations, for which the government would be solely responsible.

Participants of the press conference jointly called on the government to extend urgent relief to the transport industry to ensure its survival and enable it to continue contributing meaningfully to the national economy.

Copyright Business Recorder, 2025