- Pakistan’s trade bodies criticize proposed taxation in federal budget 2024-25.
- IT industry warns of brain drain due to high taxes, hindering growth.
- Builders express concerns over increased taxes impacting construction sector.
Karachi: Pakistan’s trade bodies, including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), have raised alarms over the proposed taxation measures outlined in the federal budget 2024-25, warning of potential negative impacts on the country’s economy.
President Atif Iqbal Sheikh of FPCCI highlighted the grievances of the Information Technology (IT) sector during a press briefing. He criticized the tax-heavy budget presented by Finance Minister Muhammad Aurangzeb, noting that despite assurances from the government, the IT industry’s concerns were neglected.
“The proposed measures could accelerate brain drain from Pakistan, stifling innovation and growth,” Sheikh told reporters, emphasizing that the budget fails to support the long-term development of the IT sector.
Saquib Fayyaz Magoon, senior vice president of FPCCI, echoed concerns raised by the Pakistan Software Houses Association (P@SHA), emphasizing that taxes on the salaried class and remote worker tax regimes could exacerbate the brain drain issue.
Magoon pointed out that the budget’s allocation of Rs79 billion primarily for government projects and IT parks neglects broader industry needs, potentially undermining sectoral growth.
Chairman Muhammad Zohaib Khan of P@SHA criticized the government’s decision to increase GST on laptop and desktop imports, foreseeing a detrimental impact on Pakistan’s IT industry.
Meanwhile, Karachi’s builders and developers, represented by Asif Sumsum of the Association of Builders and Developers of Pakistan (ABAD), expressed dismay over the budget’s taxation measures affecting the construction sector.
Sumsum warned that additional taxes on the construction industry could divert remittances to other countries and lead to widespread unemployment and housing loss among millions in Pakistan.
“The government must prioritize protecting local industries and ensuring employment opportunities,” Sumsum urged, calling for measures to safeguard the construction sector from economic instability.
As stakeholders continue to voice concerns, the debate over the federal budget’s impact on key sectors of Pakistan’s economy intensifies, prompting calls for revisions to mitigate adverse effects on growth and employment.
