No Budget Surprises – Urge Tax Relief, Export Push; Business Community Warns Govt

Business community demands no new taxes in budget

Date: 31 May 2025 | By: NewsMakers Desk

Top business groups have urged the government to deliver a predictable and growth-friendly budget, avoiding surprise taxes while focusing on export-led economic revival and relief for the salaried persons.

Key Demands from Business Leaders:

Tax relief for salaried individuals, including a cut in the 18% GST, which they say encourages evasion.
Gradual phasing out of Super Tax and a reduction in corporate tax to ease the burden on businesses.
Broader tax base through proper taxation of trade, services, and agriculture sectors.
No new taxes on export-oriented sectors to keep Pakistani products globally competitive.
Policy consistency and stakeholder engagement in tax reforms to build investor confidence.

Strategic Focus:

Pakistan Business Council (PBC) wants incentives for exports and local production to help manage the fiscal deficit and increase defence spending through higher earnings.
Overseas Investors Chamber (OICCI) calls for rationalising taxes in line with regional norms and promoting policy stability.
FPCCI and KCCI stress the need for a transparent tax system, export-friendly policies, and support for the struggling SME sector.
SITE Association urges a 15% sales tax target, reversal of recent tax law changes, and restoration of zero-rated status for export sectors.

The overall message is clear: Ease the tax burden, broaden the net, boost exports, and ensure consistency. Business leaders warn that ignoring these steps could hamper economic recovery and investor trust.