Multiple key industries, including textile exporters, telecom operators, dairy producers, and pharmaceutical manufacturers, have jointly urged the government to reduce taxes and revise duties in the upcoming federal budget. During a Senate Standing Committee on Finance and Revenue meeting, stakeholders presented detailed proposals calling for tax relief and structural reforms.
Textile representatives, including All Pakistan Textile Mills Association, demanded the abolition of the super tax and rationalisation of withholding taxes affecting exporters. Additionally, the Towel Manufacturers Association proposed restoring zero-rating status for exporters and revising tax rates for small and medium enterprises to improve competitiveness.
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Meanwhile, telecom operators pushed for major duty reductions on imported equipment, especially calling for the abolition of customs duty on 5G technology imports. Furthermore, they recommended lowering withholding tax from 6 percent to 4 percent and reducing advance withholding tax from 15 percent to 8 percent to ease financial pressure on the sector.
In addition, telecom stakeholders proposed extending the turnover tax carry-forward period from two to five years while also reducing duties on optic fibre cable imports from 67 percent to 5 percent. They further requested removal of regulatory powers that allow rejection of advance tax estimates filed by taxpayers.
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The dairy industry also presented strong recommendations, urging a reduction in sales tax on dairy products from 18 percent to 10 percent in the upcoming budget. Moreover, Pakistan Dairy Association highlighted the large size of the informal milk market and stressed that tax reforms could significantly increase formal sector growth and government revenue.
Similarly, pharmaceutical and poultry sectors called for broader tax rationalisation and incentives to boost industrial growth and employment opportunities. Industry representatives argued that reducing taxes, improving foreign exchange retention, and revising hidden levies could strengthen production capacity and increase national revenue over time.