ISLAMABAD, MAY 22 /DNA/ – Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has officially, as part of the Proposals for the Federal Budget 2026-2027, strongly advocated for the immediate reinstatement of the Final Tax Regime (FTR) for exporters of goods. The apex trade body, in its budget proposals, has highlighted that the previous withdrawal of the FTR has severely hindered the export sector by introducing critical operational bottlenecks, he added.
Mr. Atif Ikram Sheikh stressed that the removal of FTR has resulted in a significant increase in compliance requirements and extensive documentation for exporters. Furthermore, this policy shift has fueled tax-related uncertainty and led to a rise in audit harassment – diminishing the ease of doing business for the export community.
Mr. Atif Ikram Sheikh emphasized the urgent need for a policy reversal to protect the nation’s economic recovery. The withdrawal of the Final Tax Regime for exporters of goods has significantly increased compliance requirements, documentation, tax-related uncertainty and excessive audit hassles. It is our core recommendation to reinstate the FTR for exporters as a full and final liability to reduce this severe compliance burden on the business community, he added.
Mr. Atif Ikram Sheikh elaborated on the collaborative approach the government must take to ensure long-term stability. While we strongly recommend reinstating the Final Tax Regime to ease the burden on our exporters, we also propose that the exact rate of the final tax may be negotiated with relevant stakeholders to ensure a balanced, growth-oriented revenue model, he added.
Mr. Saquib Fayyaz Magoon, SVP FPCCI, has explained the necessity for incentivization and flexibility in taxation frameworks for exporters. To truly boost our national exports, an option may be provided in the upcoming budget to individual exporters to opt between the Final Tax Regime (FTR) or the Normal Tax Regime (NTR) as per their convenience and business structure, he added.
Mr. Abdul Mohamin Khan, VP & Regional Chairman Sindh, FPCCI, stated that FPCCI maintains that facilitating exporters through rationalized tax frameworks like the FTR is vital for sustainable economic growth, expanding the export base and improving Pakistan’s international competitiveness in the export markets vis-a-vis regional competitors.
