President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) AtifIkram Sheikh, has expressed strong opposition to any aggressive strategies aimed at enhancing tax collection by the Federal Board of Revenue (FBR). He emphasized that a meaningful consultative process involving the business, industry, and trade sectors is crucial for effective tax collection. Atif Sheikh criticized the FBR’s revised tax collection target of PKR 12.91 trillion for the fiscal year 2024-25, labeling it as unrealistic and detrimental to the business environment.
He pointed out that with the current economic climate providing little room for business expansion, the FBR is likely to face significant shortfalls in tax collection. Reports indicate a shortfall of PKR 99 billion from July to August 2025, with expectations of a deficit between PKR 100 to 150 billion for September 2024. FPCCI President urged the Ministry of Finance and the FBR to investigate the underlying reasons for missed tax targets. He called for actionable steps to facilitate exports, renegotiate power purchase agreements with independent power producers, and adjust the key policy rate to align with prevailing core inflation.
He noted that while core inflation is projected at around 8 percent in September 2024, the current policy rate stands at 17.5 percent, creating an economic imbalance that hampers business viability. Sheikh questioned the absence of a proactive monetary policy that supports growth and reduces the cost of doing business. He stated, “Why can’t we have a pro-growth monetary policy?” In advocating for a broadening of the tax base, Sheikh stressed the need for simplification of the taxation system rather than perpetuating maladministration.
He highlighted the importance of supporting micro, small, and medium enterprises (MSMEs) through incentives to encourage their inclusion in the tax net. SaquibFayyazMagoon, Senior Vice President of FPCCI, added that the federation is prepared to facilitate dialogue between the government and various economic sectors. However, he warned against measures that disincentivize participation in the tax system, emphasizing the necessity for businesses to find value in being part of the tax framework.
