By Commerce Reporter
LAHORE: Lahore Chamber of Commerce and Industry President Fahim ur Rehman Sehgal on Sunday presented the Chamber’s Shadow Budget 2026-27, calling for a balanced, business-friendly and growth-oriented federal budget aimed at easing pressure on industries, traders and the public.
Addressing a press conference, he recommended limiting the size of the upcoming federal budget to around Rs17,500 billion to maintain fiscal discipline and reduce unnecessary expenditures. Senior Vice President Tanveer Ahmed Sheikh, Vice President Khuram Lodhi, former president Mian Anjum Nisar and Executive Committee members Mohsin Bashir, Karamat Ali Awan, Zain Elahi, Shaban Akhtar and Imran Saleemi were also present on the occasion.
Speaking at the briefing, Fahim ur Rehman Sehgal suggested that the Federal Board of Revenue (FBR) tax target should only be increased by four to five percent, proposing a revised target between Rs14,700 billion and Rs14,800 billion.
He said the business community was already struggling with high energy prices, inflation and rising operational costs, warning that unrealistic revenue targets could further damage economic growth and business activity.
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The LCCI president proposed keeping the customs duty target between Rs1,650 billion and Rs1,660 billion, while recommending the sales tax target should not exceed Rs4,950 billion to Rs4,980 billion. He also suggested limiting the Federal Excise Duty target to Rs920 billion to Rs930 billion.
He stressed that indirect taxes significantly increase the cost of doing business and ultimately shift the burden onto consumers. According to him, the government should focus on expanding the tax net instead of placing additional pressure on existing taxpayers.
Fahim ur Rehman Sehgal said salaried individuals and industries were already paying heavy taxes, adding that sustainable revenue generation would not be possible unless untaxed sectors were brought into the formal tax system.
Highlighting national security concerns, he supported a 10 to 12 percent increase in the defence budget, saying the current security situation required stronger financial backing for defence institutions.
He further proposed increasing Public Sector Development Programme (PSDP) allocations to between Rs1,200 billion and Rs1,300 billion, stating that higher development spending would accelerate economic activity and create employment opportunities.
The LCCI president also pointed out that debt servicing remained the largest burden on current expenditures. He urged the government to reduce interest rates and refinance expensive loans in order to lower fiscal pressure and debt-related costs.
He recommended allocating dedicated funds for technical and vocational training alongside the Benazir Income Support Programme (BISP), proposing Rs100 billion to Rs150 billion for skill development initiatives aimed at improving youth employability.
Concluding the press conference, Fahim ur Rehman Sehgal called for reducing the petroleum levy target to provide relief to industries and the general public, urging the government to explore alternative revenue sources instead of relying heavily on petroleum taxation.
