Latest news with #BusinessmenPanel
Business Recorder
26-05-2025
- Business
- Business Recorder
BMP voices its concerns over delay in budget presentation
LAHORE: The Federation of Pakistan Chambers of Commerce and Industry's Businessmen Panel (BMP) has expressed serious concern over the government's decision to delay the presentation of the federal budget for the fiscal year 2025-26 and the possible imposition of additional levies, including a sharp hike in the petroleum levy. The BMP Chairman and FPCCI former president Mian Anjum Nisar termed these developments deeply troubling for the already struggling business community and warned that such decisions would further strain the economy and damage investor confidence. He said that the federal government recently shelved its plan to present the budget on June 2 and is now expected to unveil the fiscal plan on June 10. The delay has been attributed to Prime Minister Shehbaz Sharif's foreign tour as well as internal disagreements over the finalisation of expenditures. He said that this postponement creates unnecessary uncertainty at a time when the business environment is already fragile due to inflation, high energy costs, and sluggish growth. Mian Anjum Nisar stated that the delay in the budget presentation sends a negative signal to the market, businesses, and foreign investors who are waiting for policy clarity. He said that businesses plan their fiscal year strategies based on expected policy announcements, and any delay hampers their ability to make timely decisions regarding investment, procurement, and employment. He added that the lack of transparency around budget planning is further eroding trust between the business community and the government. The BMP is particularly concerned about the government's reported move to increase the petroleum levy, which currently stands at Rs78 per litre. The government is reportedly considering raising this levy further in order to finance a larger Public Sector Development Programme (PSDP) of Rs1 trillion for the next fiscal year. Mian Anjum Nisar warned that any additional levy on petroleum products would result in a significant increase in the cost of doing business, leading to a rise in inflation and further weakening the purchasing power of consumers. He noted that fuel is a key input for industries, transportation, and agriculture, and any increase in its price has a ripple effect across the entire economy. Instead of increasing indirect taxes like the petroleum levy, Nisar urged the government to focus on broadening the tax base, curbing unnecessary expenditures, and implementing structural reforms to improve revenue collection without burdening businesses and the general public. He also criticised the lack of stakeholder consultation in budget-making, especially when businesses are the biggest contributors to taxes and employment. Nisar said that the upcoming budget appears to be driven largely by the International Monetary Fund's directives, with little attention paid to the domestic realities faced by industrialists and exporters. He stressed that the government must engage with business leaders to frame policies that are sustainable and practical, rather than relying solely on external advice. The BMP also raised concerns about possible cuts to subsidies and increased energy costs in the upcoming budget. Nisar warned that the business community will not be able to absorb any further increases in electricity and gas prices, as production costs have already reached unaffordable levels. He said that many industrial units, especially small and medium enterprises, are on the verge of closure due to high input costs and lack of support from the government. The panel also criticised the government's handling of the circular debt issue in the petroleum sector. The plan to use inflated dividends from state-owned enterprises to clear circular debt lacks transparency and may lead to market distortions. Nisar said that instead of adopting temporary fixes, the government should address the structural flaws in the energy sector, including mismanagement, inefficiencies, and losses in transmission and distribution. Nisar further said that the recent abnormal increase in the share price of Pakistan State Oil (PSO), despite its poor financial condition, raises serious questions. He supported the IMF's decision to seek more clarity before approving the government's plan and expressed concern over the exclusion of PSO from the debt retirement scheme. Copyright Business Recorder, 2025
Business Recorder
15-05-2025
- Business
- Business Recorder
‘Tax Law Ordinance can negatively impact businessmen'
KARACHI: Chairman of the Businessmen Panel (BMP) and former FPCCI president Mian Anjum Nisar stated that the recently enforced Tax Laws (Amendment) Ordinance 2025 was issued without consulting relevant stakeholders, and no parliamentary debate was held on the matter. He warned that this ordinance could negatively impact the business community and undermine the rule of law. He added that a BMP delegation will soon meet with Prime Minister Shehbaz Sharif to discuss these pressing concerns. Anjum Nisar expressed these views while speaking at a dinner hosted by former FPCCI president Mian Nasser Hyatt Maggo. The dinner was also attended by Abdul Rahim Janoo, Zikriya Usman, Rafique Suleman, Haji Usman Ghani, Hanif Lakhani, Suleman Chawla, and Sultan Rehman. He further stated that the extraordinary powers granted to tax authorities through the ordinance are akin to 'economic terrorism' and cannot be accepted. Mian Nasser Hyatt Maggo highlighted the multiple challenges faced by the business sector, particularly importers, who face frequent disruptions that increase import costs. He urged the government to pay serious attention to these issues. He also praised the Pakistan Army for its timely and effective action under the leadership of General Asim Munir, which he said dealt a heavy blow to Indian aggression and proved Pakistan's defense capabilities to the world. Abdul Rahim Janoo rejected the recently amended Tax Ordinance 2025, calling it anti-economy, unconstitutional, and poisonous for investment. He said rice exporters are striving to boost national exports and demanded that the government provide them with the same incentives granted to the five other export sectors. Rahim Janoo noted that the rice sector is currently facing serious challenges in the international market but expressed hope that the REAP delegation currently in Australia would secure positive business opportunities. Rafique Suleman strongly objected to the implementation of Sections 138(3A) and 140(6A) of the Income Tax Ordinance, which allow for the immediate recovery of disputed tax dues, even when courts have granted relief. He said this undermines the sanctity of judicial decisions, violates taxpayers' constitutional rights to due process, and promotes a coercive tax regime. Suleman also praised the exceptional leadership of Chief of Army Staff General Asim Munir and his comprehensive strategy, which he said not only led to battlefield success but also boosted national morale and exposed India to global embarrassment following its cowardly nighttime attack. The business leaders reiterated their commitment to addressing these issues seriously and announced that plans are being made for an imminent meeting with the prime minister. Copyright Business Recorder, 2025
Business Recorder
12-05-2025
- Business
- Business Recorder
BMP says new Tax Ordinance could stifle investment growth
LAHORE: The Businessmen Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised significant concerns about the recently implemented Tax Laws (Amendment) Ordinance 2025. FPCCI's Businessmen Panel Chairman Mian Anjum Nisar observed that the ordinance could severely harm the country's investment climate, which is already under pressure due to various economic challenges. He further warned that if not reconsidered, these tax measures may discourage both domestic and foreign investors from engaging with Pakistan's economy, thus hindering growth. Anjum Nisar expressed disappointment that the new tax laws, while aimed at increasing government revenue, could backfire by creating unnecessary complexities in the business environment. 'The tax laws are intended to increase compliance and improve revenue, but they bring with them a set of challenges that may, in fact, make it harder for businesses to operate efficiently,' Nisar said. He emphasized that businesses already face multiple hurdles, including rising costs and an unpredictable economic environment, and the new tax regime could add additional layers of burden on businesses. 'The government needs to understand that businesses are the backbone of the economy. They are the ones who create jobs, drive innovation, and generate the taxes that support government functions,' he said. 'Unfortunately, this new ordinance adds layers of complexity that may make it more difficult for businesses, especially small and medium-sized enterprises (SMEs), to thrive.' The FPCCI former Chairman highlighted that while Pakistan's economy is struggling to recover from previous setbacks, the business community must be supported, not further burdened. He stated that the law, as it stands, does not provide the needed incentives for businesses to flourish. 'What we need is a policy environment that fosters growth, encourages investment, and provides a stable foundation for entrepreneurs to take risks. This ordinance does the opposite by imposing measures that will only increase the difficulty of doing business,' Nisar added. Copyright Business Recorder, 2025
Business Recorder
03-05-2025
- Business
- Business Recorder
BMP suggests uniform 1pc sales tax rate on all medicines
LAHORE: As the federal government enters the final phase of preparing the federal budget for 2025–26, the Federation of Pakistan Chambers of Commerce and Industry's (FPCCI) Businessmen Panel (BMP) has strongly urged the government to eliminate tax discrimination between different categories of medicines. The panel called for applying a uniform 1% sales tax rate on all medicines—whether allopathic, homeopathic, or herbal—to ensure fairness, accessibility, and consistency in healthcare taxation. The issue was discussed in detail during the meeting between Mian Anjum Nisar and a delegation from the Homeopathic Pharmac eutical and Chemist Association Pakistan (HPCA), who met him in the lead of Dr. Amanullah Bismil, Patron-in-Chief of the HPCA. The delegation included Dr. Ahsan Waris, Dr. Iqbal Hanif, Dr. Kashif Masood, and Saifurrahman Safi. The representatives shared their concerns regarding the unequal taxation structure, highlighting how it discourages the growth of the alternative medicine industry and limits consumer access to affordable treatment options. Chairman of the Businessmen Panel and former FPCCI president Mian Anjum Nisar pointed out that a significant disparity currently exists in the taxation system governing pharmaceutical and health-related products. Allopathic medicines—conventional pharmaceutical drugs—are taxed at a concessional rate of 1%, while homeopathic and herbal medicines are subject to a hefty 18% general sales tax (GST). This difference, he argued, is unjust and harmful, creating a disproportionate burden on consumers and manufacturers of non-allopathic medicines. 'The current tax system promotes inequality within the healthcare sector,' Anjum Nisar said. 'On the one hand, the government claims to prioritize public health and affordability; on the other hand, it penalizes manufacturers and users of homeopathic and herbal medicines with an unjustifiable tax rate. This contradictory policy undermines equitable healthcare access.' Dr. Bismil explained that the issue stems from outdated provisions in the Eighth Schedule of the Sales Tax Act, 1990, particularly Entry No. 81, which only refers to drugs registered under the now-repealed Drugs Act of 1976. That Act has since been replaced by the Drug Regulatory Authority of Pakistan (DRAP) Act, 2012, which regulates all therapeutic goods—allopathic, homeopathic, herbal, and nutraceutical. According to Section 32 of the DRAP Act, its provisions take precedence over earlier or conflicting laws. However, the sales tax framework has not been updated to reflect this change, resulting in a legal loophole that excludes non-allopathic medicines from receiving the same tax relief as allopathic drugs. Dr. Bismil urged the Ministry of Finance and the Federal Board of Revenue (FBR) to address this gap by amending the Eighth Schedule so that all DRAP-registered medicines are treated equally under the tax regime. He stressed that the amendment should be included in the Finance Bill 2025–26 and take effect from July 1, 2025. 'This is the ideal time to correct this policy anomaly,' said Dr. Bismil. 'As budget preparations are underway, the government must take this opportunity to demonstrate its commitment to inclusive healthcare, fair taxation, and support for local industries.' Anjum Nisar supported the delegation's demands and assured them he would take the issue to the highest level to seek a resolution. He emphasized that millions of Pakistanis—especially those in rural areas and low-income groups—rely on homeopathic and herbal treatments. By taxing these products at a higher rate, the government is restricting access for the underprivileged and effectively pushing patients toward more expensive alternatives. He further highlighted the economic potential of the alternative medicine sector, which has demonstrated remarkable resilience despite facing regulatory neglect and tax pressures. 'Pakistan has a rich heritage in traditional medicine systems, including homeopathy, Unani, and herbal formulations,' he said. 'If supported through progressive policy and tax fairness, these industries can contribute billions to the national economy and expand into export markets across the Middle East, Africa, and Asia.' Anjum Nisar added that a uniform 1% tax rate across all medicines would promote transparency, compliance, and a healthier business environment. It would allow all sectors of the healthcare industry to grow side by side, encouraging innovation and ensuring that patients have access to diverse treatment options at fair prices. He warned that maintaining the current dual tax system would continue to distort the market, discourage formalization, and hurt small- and medium-sized enterprises (SMEs) that make up the bulk of the homeopathic and herbal medicine industry. 'This is not just a tax issue—it's a healthcare issue and an economic opportunity,' Nisar concluded. 'The government must seize this moment to harmonize the taxation structure, promote equity in healthcare, and support the broader goal of industrial development in Pakistan.' Copyright Business Recorder, 2025
