Islamabad, 6 May, 2025: Industrial Tax Relief was the focal point of discussions during a recent session of the Senate Standing Committee on Finance, where multiple industry representatives presented budget-related suggestions.
The meeting, chaired by Senator Saleem Mandviwalla, brought forward key concerns from sectors ranging from poultry to construction.
Among the most vocal was the Pakistan Poultry Association, which urged the government to remove sales tax on packaged chicken products.
It also appealed for tax leniency on the ten categories of levies currently imposed on poultry feed, describing them as excessive and a burden on producers.
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The dairy sector also made its case, with representatives advocating for a significant reduction in sales tax on milk from the existing 18% down to 5% to make it more affordable and accessible for consumers.
Meanwhile, the Pakistan Fruit Juices Council called for a cut in the Federal Excise Duty (FED) on fruit-based beverages.
The council recommended bringing the current rate down from 20% to 15% to help boost the domestic fruit processing industry.
Property developers under the Association of Builders and Developers (ABAD) demanded major reforms in the taxation of real estate.
Their proposals included eliminating the controversial Section Seven-E, scrapping advance income tax on property transactions, removing taxation on land plots, and reinstating a covered-area-based tax model.
In the textile segment, towel manufacturers urged the Federal Board of Revenue (FBR) to reintroduce SRO 112, a previous regulatory framework.
They also raised objections to the 2% tax under the standard tax regime and requested utility subsidies especially for electricity bills for small and medium enterprises (SMEs).
The Steel Melters Association raised alarms over steel scrap smuggling and expressed dissatisfaction with the FBR’s practice of setting fixed market prices for steel.
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Senator Mandviwalla assured the group that he would reengage the FBR to discuss abolishing price controls.
Despite the flood of industrial tax relief appeals, FBR Chairman Rashid Mahmood Langrial noted that none of the associations had provided alternative revenue strategies to offset the proposed tax reductions. He highlighted the importance of balancing fiscal policies with national revenue goals.
The committee is expected to further examine these recommendations as part of its pre-budget consultations in the coming weeks.
