Press Release Title: Senator Muhammad Talha Mahmood, Convener Sub-Committee of the Senate Standing Committee on Finance and Revenue presiding over a meeting of the committee at Parliament House Islamabad

Press Release Date: 11th August, 2026

Senate Sub-Committee on Finance and Revenue Calls for Business-Friendly Tax Reforms and Urgent Resolution of Transport Strike   The Sub-Committee of the Senate Standing Committee on Finance and Revenue met today at Parliament House to review the issues regarding FBR taxation policies in the country. The meeting was chaired by Senator Muhammad Talha Mahmood.   Opening the discussion, Convener Senator Muhammad Talha Mahmood stated that the objective of the meeting was to explore mechanisms for promoting economic activity and creating a conducive environment for businesses. He observed that many companies were either scaling down operations or leaving the country due to high energy costs and a burdensome tax regime.   Officials of the Federal Board of Revenue (FBR) informed the Committee that taxation measures had been influenced by the country’s import requirements and fiscal constraints. They highlighted recent relief measures introduced by the Government, including tax reductions for salaried individuals, a decrease in super tax, and the elimination of super tax for exporters. The officials further stated that the Government had absorbed a revenue impact of approximately Rs. 359 billion to facilitate businesses and stimulate economic activity. They also informed the Committee that exporters’ facilitation committees had been established in Karachi, Lahore, Sialkot, Faisalabad, Islamabad, and Multan to address tax concerns.   Representatives of the business community expressed serious reservations regarding the current taxation framework. Mr. Mian Zahid Hussain, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) stated that national policy appeared overly focused on revenue generation rather than economic growth. He emphasized the need to reduce advance and withholding taxes, rationalize customs duties, simplify audit procedures, and review factory surveillance mechanisms. He maintained that cumbersome tax procedures and compliance requirements had discouraged industrial growth and increased the cost of doing business.   Similarly, Mr. Jadoon, Vice President of a Chamber of Commerce, noted that despite Pakistan’s competitive labour costs, businesses continued to face significant challenges due to high electricity tariffs and regulatory burdens. He stressed the need to broaden the tax base by bringing new sectors and businesses into the tax net rather than placing additional pressure on existing taxpayers.   During the discussion, Senator Talha Mahmood questioned the effectiveness of existing measures aimed at attracting foreign investment and sought details regarding mechanisms for investor protection and share transfers. The Convener directed the relevant authorities to provide the Sub-Committee with a comprehensive briefing on the existing framework.   The Committee expressed serious concern over the absence of the Secretary Finance. Senator Talha Mahmood directed that the Secretary ensure attendance at the next meeting, warning that continued absence could result in the matter being referred to the Senate Privileges Committee.   The Convener reiterated that sustainable economic growth could only be achieved through business-friendly policies and transparent governance. He emphasized the need to appoint competent and honest officials capable of formulating policies that encourage investment, industrialization, and entrepreneurship. FBR officials informed the Committee that the Board was undertaking reforms to improve taxpayer facilitation, including the development of a mobile application for tax reimbursements and the designation of specific facilitation days in major commercial centres across the country.   The Committee also discussed the ongoing goods transport strike and its adverse impact on trade and economic activity. Senator Talha Mahmood expressed concern over delays in resolving the issue, noting that perishable goods were at risk of spoilage while businesses were incurring substantial losses due to container detention charges. He urged the Government to immediately engage with affected stakeholders and resolve the matter to prevent further economic losses and safeguard Pakistan’s international business reputation.   The Convener further recommended that where taxpayers rectify genuine errors in their tax returns, their accounts should be restored within 24 to 48 hours. He also stressed the need for an efficient biometric verification system to facilitate taxpayers and observed that early market closure timings were negatively affecting commercial activity.   Concluding the meeting, the Sub-Committee strongly recommended immediate dialogue with transporters and other stakeholders to address their concerns and restore normal business operations at the earliest.