LAHORE: Minister of State for Finance Revenue and Railways Bilal Azhar Kiyani has praised the government for introducing major tax relief measures and structural reforms to reduce the burden on businesses, exporters, salaried individuals and small traders.
Speaking at the Lahore Chamber of Commerce and Industry (LCCI) on Saturday, he said the super tax has been abolished for exporters and businesses with annual income between Rs150 million and Rs500 million, while the rate for companies earning more than Rs500 million had been reduced from 10 per cent to 8 per cent. For exporters, the tax deducted from export proceeds had also been reduced from 2.0 per cent to 1.25 per cent.
Welcoming the minister, LCCI President Faheem Ur Rehman Saigol highlighted high electricity tariffs, enforcement actions by various government agencies, and issues involving the Lahore Development Authority (LDA), Ravi Urban Development Authority (RUDA) and Environmental Protection Agency (EPA). He also raised concerns over the rapid conversion of agricultural land into housing schemes.
Saigol said the government must protect productive agricultural land and broaden the tax base. He also expressed concern over the proposed relocation of 8,000 to 10,000 industrial units, saying Pakistan lacked the industrial zones and infrastructure needed to relocate even a fraction of these units within a short period.
Kiyani said exporters have been provided relief through a reduction in the tax deducted from export proceeds. Previously, exporters faced a combined deduction of 2 per cent, which had now been reduced to 1.25 per cent.
He said customs reforms, including the Faceless System, are being introduced to eliminate direct interaction between appraisers and importers and reduce the possibility of collusion.
He explained that audit and assessment orders will be generated through a centralised, CRM-driven system using taxpayers’ returns, other relevant information and predefined parameters.
He said the new tax regime for traders will be available to small traders with annual sales of up to Rs200 million. Participation will be optional, allowing traders to continue filing returns under the normal tax regime if they preferred.
Participating shopkeepers will also receive a physical FBR plate to display outside their shops, he said. The objective is to prevent routine visits by FBR officials for unnecessary inquiries and provide greater protection against harassment.
The minister said an estimated 600,000 to 700,000 shopkeepers with commercial electricity meters are already filers and appreciated the business community’s role in supporting efforts to broaden the tax base.
