Islamabad: The Federal Board of Revenue (FBR) is considering further tax relief for businesses, including a possible reduction in super tax and the sales tax burden, amid concerns over high operating costs, expensive financing and a difficult business environment.
The development came during a meeting of the Sub-Committee of the Senate Standing Committee on Finance, where business representatives called for measures to reduce the cost of doing business and encourage investment and industrial activity.
FBR Member Hamid Ateeq Sarwar told the committee that further tax relief was under consideration, with super tax among the areas being reviewed. He also said the government was examining measures to reduce the sales tax burden on businesses.
He said the government had already provided around PKR 361 billion in tax relief under the prime minister’s directions and that efforts to rationalise the tax burden would continue. Recent measures included tax reductions for salaried individuals, a reduction in super tax and the elimination of super tax for exporters.
Business representatives, however, said high taxation, electricity costs, expensive financing and regulatory burdens were discouraging investment. They also raised concerns over frequent notices, audits and enforcement actions by FBR field formations.
Mian Zahid Hussain of the Federation of Pakistan Chambers of Commerce and Industry’s Policy Advisory Board called for reductions in advance and withholding taxes, rationalisation of customs duties and simpler audit procedures. He said tax policy should place greater emphasis on economic growth rather than revenue generation.
Tariq Khan Jadoon, FPCCI vice president, said businesses continued to face significant challenges despite Pakistan’s competitive labour costs, particularly because of high electricity tariffs and regulatory burdens. He called for broadening the tax base by bringing more sectors and businesses into the tax net rather than increasing pressure on existing taxpayers.
The committee stressed the need for a business-friendly and transparent tax regime, warning that excessive taxation could discourage investment and weaken the formal tax base.
FBR officials also briefed the committee on taxpayer facilitation measures, including a proposed mobile application for tax reimbursements and designated facilitation days in major commercial centres.
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