Karachi, Aug 8 (DNA) – Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has welcomed the government’s decision to reverse several stringent budgetary measures from the 2025-26 federal budget, which had raised concerns among the business community.
Key Budgetary Revisions Secured by FPCCI
- Arrest Powers Under Section 37A of Sales Tax Act
- Previously, FBR officers had broad arrest authority, raising fears of harassment.
- Now, arrests will be limited to severe fraud cases (e.g., fake invoices).
- A committee (including trade body nominees) must approve investigations.
- A Grievance Redressal Committee will review arrests every 15 days.
- Section 21(s) of Income Tax Ordinance – Cash Transaction Restrictions
- Earlier, 50% expenditure disallowance was imposed on cash payments exceeding Rs. 200,000.
- Now, payments received in sellers’ bank accounts (even from non-NTN holders) will be considered valid.
- Section 8B of Sales Tax Act – Input Tax Restrictions
- FBR will now consult trade bodies before altering input tax conditions.
- Section 40B of Sales Tax Act – Grievance Resolution
- A 5-member committee will review complaints every fortnight.
E-Invoicing & Sindh Infrastructure Cess (IDC) Updates
- E-Invoicing Implementation: FPCCI urges a phased rollout over 6-9 months instead of immediate enforcement.
- Sindh IDC on Solar Panels: The Sindh government has agreed to reduce Infrastructure Development Cess (IDC) from 1.85% to 1%, pending withdrawal of court cases.
FPCCI’s High-Level Engagements
The FPCCI delegation, including Gohar Ejaz (ex-Commerce Minister) and S.M. Tanveer (UBG Patron-in-Chief), held meetings with:
✔ PM Shehbaz Sharif
✔ Finance Minister Muhammad Aurangzeb
✔ SAPM Revenue Haroon Akhtar Khan
✔ SIFC & FBR Leadership
Why This Matters
The revised measures prevent business disruptions, curb harassment risks, and promote ease of doing business in Pakistan.
