The Karachi Chamber of Commerce and Industry (KCCI) has urged the government to expand the tax net instead of imposing additional burdens on existing taxpayers, saying industries, traders, and exporters are facing growing economic challenges.
KCCI President Rehan Hanif outlined several recommendations aimed at improving the business environment and supporting industrial growth ahead of the federal budget.
Chamber Calls for Broader Tax Base
The chamber stressed that sectors already paying taxes should not face additional levies.
Instead, it recommended bringing under-taxed sectors into the documented economy.
According to KCCI, sectors such as retail, wholesale, agriculture, and real estate contribute less in taxes compared to the scale of their economic activities.
The chamber urged the government to take effective measures to increase documentation and broaden the tax base.
Opposition to Higher Energy Prices
KCCI opposed any increase in gas and electricity tariffs.
The chamber warned that rising energy costs are undermining the competitiveness of local industries.
It said manufacturers are already struggling with increasing production expenses and higher utility bills.
According to the chamber, further increases would make it difficult for businesses to compete in international markets.
High Interest Rates Hurting Industry
The chamber also criticized the State Bank’s interest rate policy.
KCCI said expensive financing and elevated energy costs have placed severe pressure on the productive sector.
Business leaders argued that high borrowing costs discourage investment and limit industrial expansion.
They called for policies that would support economic activity and reduce the cost of doing business.
Relief Sought on Super Tax Payments
KCCI highlighted the liquidity problems faced by industries and sought relief regarding outstanding super tax liabilities.
The chamber proposed allowing installment payments or adjusting dues against pending refunds.
According to KCCI, these measures would help financially stressed industrial units and prevent factory closures.
Business leaders said such support is necessary to maintain production and protect jobs.
Port Delays Creating Trade Problems
The chamber identified delays in cargo clearance and the growing backlog of containers at Karachi’s ports as major concerns for traders and manufacturers.
It said these delays are disrupting supply chains and increasing business costs.
KCCI proposed relief in port charges and demurrage fees to facilitate the timely movement of raw materials and imported goods.
The chamber stressed that reducing logistical bottlenecks would improve trade efficiency and support industrial activity.
Support for Digital Reforms
KCCI also endorsed the “One City, One Chamber” policy.
In addition, it called for the complete digitalization of trade marks, intellectual property rights, and customs procedures.
According to the chamber, digital reforms would reduce compliance costs and simplify regulatory requirements, particularly for small and medium-sized enterprises.
Business leaders said modernizing these systems would improve ease of doing business and increase efficiency.
Industry Seeks Supportive Policies
The chamber emphasized that Pakistan’s industrial and commercial sectors require supportive policies to remain competitive.
It urged the government to focus on expanding the tax base, lowering business costs, and improving trade infrastructure.
KCCI said such measures would encourage investment, strengthen exports, and contribute to sustainable economic growth.