Consultation with business community central to tax policy reforms, says Najeeb A. Memon

By Commerce Reporter

LAHORE, February 13 — Director General, Tax Policy Office, Najeeb A. Memon, said the government’s economic strategy focuses on strengthening the industrial base and increasing exports. He added that tax reforms are being developed to make the system business-friendly, encourage investment, and reduce production costs.

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Speaking at a meeting at the Lahore Chamber of Commerce and Industry, he said several reforms are under consideration, including super tax, social contributions, minimum tax, and a new trader scheme, to make the tax system simpler, fairer, and more effective while expanding the tax base.

LCCI President Faheem Ur Rehman Saigol delivered the welcome address. Senior Vice President Tanveer Ahmed Sheikh, Vice President Khurram Lodhi, Director of Tax Policy Office Munir Ahmed Choudhry, Executive Committee Member Amir Ali, and other guests were also present.

Najeeb A. Memon explained that the Tax Policy Office was created to separate tax policy-making from tax collection, allowing independent and professional policies aligned with national economic goals. The office reports directly to the Finance Minister and its expert team prepares transparent and impartial recommendations to simplify tax laws and improve ease of doing business.

LCCI President Faheem Ur Rehman Saigol said separating tax policy from tax collection is a positive step toward transparency and a better business environment. He emphasized that the next federal budget should focus on reducing business costs, promoting industrial growth, and increasing exports. High energy prices, high interest rates, and heavy taxes are currently putting the industry under pressure.

He noted that many foreign companies are moving their businesses out of Pakistan, and some Pakistani companies are registering abroad, reducing investment and increasing unemployment. He stressed that expanding the tax base is necessary to reduce the overall tax burden and that new taxpayers can easily be brought into the system using available government data.

He also said the National Tariff Policy should reflect Pakistan’s economic realities, as local industries face high production costs. He called for restoring the final tax regime, ending the Sindh Infrastructure Development Cess, and ensuring timely tax refunds.

To bring more traders into the system, he suggested introducing a simple fixed-tax regime and reviewing the minimum tax system for low-margin businesses. He also stressed the need for comprehensive monitoring of tax exemptions under SROs.

He added that tax enforcement should be balanced and business-friendly, as regular taxpayers often face repeated audits and unnecessary actions. Saigol expressed hope that the Tax Policy Office will develop policies that support industrial growth, exports, and economic stability.

Senior Vice President Tanveer Ahmed Sheikh suggested providing a five-year EV policy to give investors confidence in this sector.

Najeeb A. Memon added that the Tax Policy Office aims to simplify income tax, sales tax, and federal excise laws, eliminate unfair differences, and close loopholes that allow tax evasion. For this, close collaboration with the business community is being encouraged to identify practical challenges and competitive imbalances for policy reforms.

He said transparency, inclusiveness, and trust are the core values of the Tax Policy Office, and all policies will be developed after consulting all stakeholders, including the business community. The government wants to share its proposals with businesses before the budget to ensure a transparent dialogue and present actionable suggestions for parliamentary approval.

Despite current financial constraints under the IMF program, Najeeb A. Memon said opportunities are being explored in manufacturing, digitalization, ICT, and new industries. He called on chambers to provide practical suggestions to boost industrial growth and exports.

He added that options are being considered to gradually reduce or eliminate super tax, and a new trader scheme is being designed to simplify registration and restore trader confidence. He emphasized that “one size fits all” does not work in the tax system and that separate systems are needed for large companies, SMEs, and traders.