‘Govt should review WHT imposed on FMCG, food industry’

HYDERABAD: Chairman of Hyderabad SITE Association of Trade & Industry Zubair Ghangra has remarked that the withholding and advance tax imposed by the FBR on the FMCG sector and especially the food industry under Sections 236G and 236H is causing severe difficulties and administrative complications for the business community.

This system is practically creating unnecessary pressure on various stages of the supply chain, which is affecting the pace of industrial activities.

He said that a large part of the retail market in Pakistan still consists of unregistered shopkeepers, due to which the tax burden is mainly shifted to manufacturers, wholesalers and distributors. As a result of this imbalance, not only the cost of doing business is increasing but also disproportionate pressure is increasing on the organized and registered sector.

Zubair Ghangra said that this situation has affected the cash flow of the FMCG and food industry, while the documentary compliance requirements have also increased to an unnecessary extent. As a result, the ease of doing business is being affected and additional pressure is being created on low-margin items, which ultimately affects both the consumers and the economy.

He added that this system is also indirectly strengthening the informal economy, as unregistered market players remain outside the ambit of this tax net while the burden falls on registered entities. It is not possible to establish an effective and fair tax system without removing this imbalance.

Ghangra demanded that the government urgently and comprehensively review the withholding tax imposed on FMCG and basic food items under Sections 236G and 236H and reform it in a manner that makes the system business-friendly, simple and practically enforceable. He said that the tax policy needs to be structured in such a way that it not only increases revenue but also ensures industrial development and business stability.

Copyright Business Recorder, 2026