Opportunity

Opinions on the budget are pouring in, and local chambers of commerce and business unions are expressing their concerns. The most visible are exporters who, despite huge amounts of taxable profits, feel threatened by the 29% standard tax regime (STR) imposed in the new budget. Call it an IMF-friendly budget, but facts and statistics suggest that Pakistan needs to generate more tax revenue. Businesses and industries demand ease of doing business and tax exemptions from the government, but these concessions have made life unbearable for the lower-income classes.

Every sector must now take responsibility and pay its fair share of taxes to the state. The local formula industry avoids paying taxes on the huge sums it earns each year by classifying the product as an essential commodity. It is irresponsible for industry leaders to claim they need tax breaks. Paying taxes is a matter of taking responsibility and ownership, but after years of enjoying relaxation, businessmen and traders seem reluctant to honor the agreement. The same can be said about the reaction of rice exporters who fear that the FBR will gain access to their accounts.

The only sector that has brought revenue to the country is the agricultural sector, which has been granted tax exemption. The Lahore Chamber of Commerce and Industry seems to be overlooking this fact, calling on the government to tax the agricultural sector as well. The economic policies adopted in the 2024-25 budget are the result of necessity, and with an almost empty treasury, the government had no choice but to impose seemingly harsh tax measures. The industry needs to acknowledge this and play a supportive rather than antagonistic role.