Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has firmly expressed the organization’s opposition to any additional tax increases on already burdened sectors.
Sheikh criticized proposals for advanced tax collection, withholding tax (WHT), and other stringent deductions, emphasizing that the business, industry, and trade sectors have reached their limits with current taxation policies.
Sheikh reiterated FPCCI’s position, advocating for broadening the tax base, simplifying the tax filing process, and implementing meaningful tax reforms. He stressed the need to eliminate harassment and inefficiencies within the tax administration, rather than imposing further regressive and counterproductive measures.
According to Sheikh, WHT constitutes 70% of all direct taxes collected under the sales tax regime for FY24, a figure he described as concerning. He warned that potential increases in WHT, aimed at satisfying IMF requirements and showcasing higher tax revenues, would not reflect genuine progress but rather a misguided attempt at performance improvement.
Sheikh also pointed out that any proposed increase in WHT would necessitate a supplementary finance bill or mini-budget for 2025, measures that typically undermine investor confidence, lead to capital flight, and disrupt industrial operations.
He stressed that such actions would further erode trust among trading partners and negatively impact the export sector.
