Latest news with #SITEAssociationofIndustry
Business Recorder
28-05-2025
- Business
- Business Recorder
SAI submits comprehensive proposals for federal budget
ISLAMABAD: The SITE Association of Industry (SAI) has submitted comprehensive budget proposals for the Federal Budget 2025-26, advocating for policy measures to stimulate industrial growth and enhance Pakistan's export competitiveness. In budget recommendations, SAI President Ahmed Azeem Alvi and former president Riaz Uddin, who chairs the association's taxation committee, emphasized the need to transform budget-making into a strategic economic tool rather than maintaining it as a routine fiscal exercise. The industry body emphasized the institutional separation of tax policy formulation and tax administration to avoid conflicts of interest and align with global best practices. Drawing comparisons with the UK and other neighbouring countries' models, SAI suggested the establishment of a structure where tax policy rests with the Ministry of Finance, revenue sharing is managed by an independent finance commission, and consumption taxes are regulated by a dedicated council. Addressing structural weaknesses in the taxation system, SAI noted that Pakistan's income tax base remains narrow-just 9 to 10 percent of GDP- while the formal industrial sector bears a disproportionate tax burden. The association recommended widening the tax net to include all untaxed and under-taxed sectors and capping the maximum income tax rate on business income at 25 percent over the next three years. It further proposed the abolition of the Super Tax, terming it an outdated and unjust burden, and called for relief on inter-corporate and individual dividend taxation. Ahmed Azeem Alvi and Riaz Uddin expressed serious concerns about recent amendments to the Income Tax Ordinance through Ordinance IV of 2025, particularly changes to Sections 138(3A), 140(6A) and 175C of the Income Tax Ordinance. According to SAI, these amendments grant excessive powers to tax authorities and contravene Articles 4, 18, and 77 of the Constitution. The association demanded that the amendments be withdrawn immediately, arguing that they could deter compliance, encourage informality, and diminish investor confidence. Regarding sales tax reforms, SAI leaders pointed out persistent challenges due to overlapping federal and provincial jurisdictions. It proposed a harmonized General Sales Tax (GST) structure supported by a single compliance portal, enabling seamless cross-jurisdictional input tax adjustments. The association stressed the need for expeditious refund mechanisms, with refund payment orders (RPOs) to be issued within five working days of claim submission and payments processed shortly thereafter. Concerns were also raised about the prevailing 22 percent combined sales tax and further tax rate, which the association believes fuels evasion and hinders formalization of the economy. A review of the tax rate structure was urged to reduce distortions and incentivize registration. SAI Chief urged the government to implement progressive reductions in the sales tax rate, targeting a 15% rate over the next three years. The association argues that this reduction will help lower the cost of doing business for the formal tax-paying sector and promote overall economic growth. He also called for the abolition of the additional sales tax, which it claims encourages the continuation of the informal sector by allowing businesses to evade registration and tax obligations. According to the association, this perpetuates a cycle of non-compliance, hindering the formalization of the economy. Furthermore, the association recommends that sales tax exemptions on essential goods, including basic staple foods, pharmaceuticals, and education-related products, should be maintained. These exemptions are seen as crucial in providing a safety net for the common man, particularly in the face of inflationary pressures. SAI also requested the restoration of zero-rating on export facilitation schemes and educational stationery, as promised by the Finance Minister in his budget closing remarks in June 2024. The association believes that reinstating these exemptions will promote the export sector and ease financial burdens on educational institutions. In addition, the association proposed the introduction of a lower sales tax rate of 5% for other essential and deserving items to further reduce the financial strain on consumers. The industry body called for the removal of area-specific sales tax exemptions in the former tribal areas (FATA/PATA). The association stresses that such exemptions should not continue in any form, in line with the broader goal of tax uniformity and fiscal reform across the country. Ahmed Azeem Alvi and Riaz Uddin also emphasized for comprehensive reforms in Pakistan Customs, highlighting outdated legislation, tariff fragmentation, under-invoicing, and ineffective enforcement as key challenges. It recommended a revision of the Customs Act to align with WTO and WCO standards, simplification of duty structures, and adoption of a unified valuation and appraisal system. SAI advocated for the port of entry to be designated as the sole revenue collection point to prevent revenue leakage and ensure smooth inland movement of goods. On social welfare schemes, they criticized the current management of employee welfare programs (EOBI, PESSI/SESSI, WWF, and WPPF) as inefficient and outdated. The schemes largely funded by employers, offer minimal influence to contributors over fund management and disbursement. The association proposed the integration of these schemes into a unified authority with digital interfaces, central governance, and tripartite representation from employers, employees, and regulators. Disbursements, it suggested, should be made via mobile payment platforms, while health and related services could be outsourced to third-party providers. The budget proposals underscore SAI's position that economic policy should balance revenue needs with industrial growth objectives, particularly through measures that enhance Pakistan's export potential and attract productive investment. Copyright Business Recorder, 2025
Express Tribune
28-05-2025
- Business
- Express Tribune
SAI urges tax reforms in budget proposals
Listen to article The SITE Association of Industry (SAI) has submitted its budget proposals for 2025-26, urging the government to adopt structural tax reforms aimed at boosting industrial growth and improving export competitiveness. SAI President Ahmed Azeem Alvi, who also heads the association's taxation committee, stressed that budget-making must evolve into a strategic economic exercise rather than remain a routine fiscal event. A central proposal is the separation of tax policy formulation from tax administration to avoid conflicts of interest. Citing global best practices, SAI recommended assigning tax policy to the Ministry of Finance, entrusting revenue sharing to an independent finance commission, and regulating consumption taxes through a dedicated council. SAI highlighted that Pakistan's narrow income tax base — just 9% to 10% of GDP — forces the formal industrial sector to shoulder an unfair tax burden. The association urged expansion of the tax net to include untaxed and under-taxed sectors and proposed capping the income tax rate on business income at 25% over the next three years. The group also called for the abolition of the super tax, labelling it outdated and inequitable, and sought relief on inter-corporate and individual dividend taxation. Expressing concern over recent changes to the Income Tax Ordinance via Ordinance IV of 2025, particularly to Sections 138(3A), 140(6A), and 175C, SAI argued these amendments give unchecked powers to tax officials and violate Articles 4, 18, and 77 of the Constitution. It warned the measures would deter compliance, promote informality, and hurt investor confidence.
Business Recorder
20-05-2025
- Business
- Business Recorder
TP-1, TP-3: SAI team witnesses KWSC's recycled water initiative
KARACHI: A delegation from the SITE Association of Industry (SAI), led by its President Ahmed Azeem Alvi, visited the TP-1 and TP-3 recycled water treatment plants in the SITE industrial area to review the progress of the reclaimed water initiative spearheaded by the Karachi Water & Sewerage Corporation (KWSC). The delegation included Chief Coordinator Saleem Parekh, Former President Muhammad Kamran Arbi, APTPMA Zonal Chairman Anwer Aziz, Executive Committee Members Ahmed Zulfiqar Chaudhry and Muhammad Kamran Lakhany, as well as Muhammad Altaf Sheikhani. Irshad Hussain of Pak-Oasis also joined the visit and Dr Muhammad Bashir Lakhany of Techno Consult International. President SAI expressed strong appreciation for the leadership and vision of Mayor Karachi Barrister Murtaza Wahab, whose proactive approach to addressing the city's water challenges is beginning to bear fruit. He lauded the Mayor's commitment to transforming SITE into an environmentally responsible and water-resilient industrial zone. During the visit to TP-3, the delegation observed that the plant is currently treating 35 Million Gallons per Day (MGD) of wastewater before safe discharge into the sea — a major step towards preserving marine and environmental health. The Mayor's vision to utilize recycled water for industrial use was recognized as a forward-looking strategy that will ensure both sustainability and self-sufficiency for industries in SITE. Special commendation was also extended to KWSC CEO Ahmed Ali Siddiqui for his tireless efforts in implementing the Mayor's vision. His technical leadership and operational execution have been instrumental in driving the recycled water project forward. The delegation was also briefed on the pilot project for producing industrial-grade treated water from discharged effluent. Discussions were held on the expected timeline, supply mechanisms, and future expansion plans. The SITE Association also extends its deepest appreciation to Chief Minister Sindh, Murad Ali Shah, for his unwavering support and strategic leadership in driving this crucial initiative. His commitment to improving Karachi's infrastructure and addressing industrial needs through sustainable solutions has played a pivotal role in enabling projects like the recycled water initiative to take shape and deliver impact. Under his guidance, inter-agency coordination and long-term planning have received a much-needed boost, paving the way for a more resilient and eco-conscious industrial ecosystem. Alvi remarked, 'The future of the SITE industrial area is promising. Thanks to the recycled water initiative, we are moving toward long-term water security. We deeply appreciate the dynamic leadership of Barrister Murtaza Wahab and the capable stewardship of Ahmed Ali Siddiqui, along with the dedicated teams at KWSC, for turning this vision into reality.' Copyright Business Recorder, 2025
Business Recorder
15-05-2025
- Business
- Business Recorder
SAI chief says now time to focus on economic battle
KARACHI: Ahmed Azeem Alvi, President of the SITE Association of Industry, expressed deep gratitude for Pakistan's recent military victory, attributing the success to divine support, public prayers, and the sacrifices of the Pakistan Army. He emphasised that with the military triumph secured, the nation must now shift its focus to focus on winning the economic battle. Alvi urged the government to prioritise economic development by involving the business community in policy-making. He called for measures to ease the tax burden on businesses and protect them from harassment by Federal Board of Revenue officials. Proposing a streamlined tax system, he suggested a one-window operation where industrialists and traders could deposit fixed amounts directly into official bank accounts to ensure transparency and reduce corruption. Appealing to Prime Minister Shehbaz Sharif, SAI chief highlighted the Prime Minister's business background, expressing confidence that he understands the challenges entrepreneurs face. He urged the government to make business-friendly decisions and shield the sector from harassment by regulatory bodies. He stressed that the business community is committed to expanding enterprises, creating jobs, and boosting foreign exchange reserves. He believes addressing these priorities will drive sustained economic progress. He said, 'Just as Pakistan succeeded on the battlefield, it can also achieve victory in the economic arena and emerge as a strong economic power.' Copyright Business Recorder, 2025
Express Tribune
10-05-2025
- Business
- Express Tribune
Tax law changes may hurt investor confidence
Details reveal that a new law is being introduced through the Finance Bill, amending the Income Tax Ordinance, to enforce this measure. Photo: AFP/FILE Listen to article The SITE Association of Industry (SAI) has made an urgent appeal to the prime minister to withdraw the recently promulgated Income Tax Ordinance (Ordinance No IV of 2025), citing serious concerns over its constitutionality and adverse impact on the formal business sector. In the appeal made on Friday, SAI President Ahmed Azeem Alvi acknowledged the government's ongoing efforts to improve the business environment but warned that the proposed amendments risked derailing those efforts by imposing harsh and disproportionate measures on formal businesses. "The new provisions undermine the documented economy, discourage compliance and may reverse the progress made for broadening the tax base," he said. "These amendments are not only economically burdensome but also legally problematic. They appear to violate constitutional guarantees and the principles of natural justice." The SAI emphasised that bypassing parliamentary procedures to implement such sweeping changes would set a troubling precedent and damage investor confidence.
