Tax rates revision: Panel to present report to SAPM for budget inclusion

ISLAMABAD: A meeting of the special committee constituted by Prime Minister Shehbaz Sharif on rationalisation of tax rates in consultation with business community, Monday, unanimously, decided to present a comprehensive report on the subject to the Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan.

A meeting of the committee constituted by the prime minister to rationalise tax rates was held here under the chairmanship of Haroon Akhtar Khan to discuss matters related to rationalising the various taxes in the country. The meeting besides Additional Secretary of Finance Ministry, senior officials of the Federal Board of Revenue (FBR), State Bank of Pakistan, Commerce Ministry and Board of Investment was also attended by the Federation of Pakistan Chamber of Commerce and Industry as well as representatives of leading chambers of the country.

The committee discussed the challenges posed by high tax rates and the lack of incentives for domestic industries. Speaking on the occasion, the SAPM stated that the prime minister had constituted the committee with the mandate to identify the problems and suggest viable solutions.

The SAPM emphasised that to compete economically at the regional level, Pakistan must address these critical issues. He pointed out that the industrial sector is severely affected by high taxation, leading to the closure of businesses.

“We must work towards reviving sick industries and expanding operational industries,” said Haroon Akhtar Khan. He informed that the committee would present its recommendations and proposed solutions to the prime minister for inclusion in the upcoming budget. Haroon Akhtar Khan assigned the committee members the task of submitting concrete solutions and actionable recommendations at the next meeting.

During the meeting, the business community presented their concerns and recommendations regarding the current business regime, saying that to increase the exports from the country the government besides lowering input costs including electricity and gas has to reduce the ratio of various taxes. The additional secretary Ministry of Finance and the FBR official informed the participants that at this juncture when the country was in an International Monetary Fund’s programme, can’t reduce taxes, therefore, “at present we must ponder on other options”.

Chairing another special committee to “prevent undue interference by state authorities” constituted by the PM, the SAPM on Industries and Production directed the relevant departments instead of creating hurdles, they must focused on addressing the issues faced by industrialists and investors which is critical for the development of the country.

During the discussion, the business community raised concerns regarding unnecessary interference by state institutions, the lack of Business Facilitation Centres and one-window operations, as well as inadequate support and taxation-related challenges from the government.

Khan emphasised that, in line with the prime minister’s vision, facilitating industrialists would accelerate economic activities. He cautioned that undue interference by state authorities could negatively impact investment and economic growth.

Haroon Akhtar Khan highlighted that the prime minister envisions state institutions playing a key role in providing facilitation, ensuring the protection and support of industrialists, and boosting business confidence.

He stated that the establishment of Business Facilitation Centres, promoting ease of doing business, and formulating supportive policies are critical pathways for the revival and growth of Pakistan’s industrial sector.

Copyright Business Recorder, 2025