ISLAMABAD: A wide range of tax relief, tariff reforms, and export incentives dominated discussions during the Senate Standing Committee on Finance and Revenue’s second consecutive pre-budget consultative session for the upcoming federal budget 2026-27.
The session, chaired by Senator Saleem Mandiwalla, brought together lawmakers, senior officials from the Ministry of Finance, and representatives from multiple trade, industrial, and consumer bodies to present proposals aimed at shaping the Finance Bill 2026-27.
Senator Mandiwalla said the consultative process is intended to bridge gaps between policymakers and the business community while ensuring smoother business operations, removal of tax anomalies, and promotion of exports and investment.
The meeting was attended by Senators Talha Mahmood, Dilawar Khan, and Abdul Qadir, along with MNA Ali Musa Gilani and senior finance ministry officials.
Stakeholders from sectors including poultry, pharmaceuticals, steel, telecom, automotive, textiles, dairy, and construction presented detailed recommendations. Key proposals included rationalizing sales tax structures, reducing withholding taxes, revising tariffs, and introducing incentives for export-oriented industries.
The Pakistan Poultry Association called for reforms in the sales tax regime and incentives to increase women’s participation in the workforce. The pharmaceutical sector urged higher foreign exchange retention and adjustments in tax policies to boost industrial output.
Steel industry representatives pushed for changes in tax collection methods, while the Islamabad Chamber of Commerce recommended lowering withholding tax rates and improving transaction transparency.
The Exchange Companies Association highlighted the widening gap between official and open market dollar rates, urging a higher permissible exchange margin to curb illegal trading activity.
Consumer representatives raised concerns over rapidly increasing formula milk prices, calling for stricter regulation and expanded price monitoring mechanisms.
The fruit juice industry reported declining sales and demanded reduction in Federal Excise Duty, while dairy sector stakeholders said high taxation has shrunk the formal market share and urged tax cuts to revive growth.
Export sectors, including textiles and rice, stressed urgent tax rationalization to remain competitive globally.
At the conclusion of the session, the committee compiled all recommendations for onward review by the Ministry of Finance as part of the final budget preparation process for FY2026-27.
