Karachi, Aug 8 (DNA) – Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has welcomed the government’s decision to reverse several stringent budgetary measures from the 2025-26 federal budget, which had raised concerns among the business community.

Key Budgetary Revisions Secured by FPCCI

1. Arrest Powers Under Section 37A of Sales Tax Act
   • Previously, FBR officers had broad arrest authority, raising fears of harassment.
   • Now, arrests will be limited to severe fraud cases (e.g., fake invoices).
   • A committee (including trade body nominees) must approve investigations.
   • A Grievance Redressal Committee will review arrests every 15 days.
2. Section 21(s) of Income Tax Ordinance – Cash Transaction Restrictions
   • Earlier, 50% expenditure disallowance was imposed on cash payments exceeding Rs. 200,000.
   • Now, payments received in sellers’ bank accounts (even from non-NTN holders) will be considered valid.
3. Section 8B of Sales Tax Act – Input Tax Restrictions
   • FBR will now consult trade bodies before altering input tax conditions.
4. Section 40B of Sales Tax Act – Grievance Resolution
   • A 5-member committee will review complaints every fortnight.

E-Invoicing & Sindh Infrastructure Cess (IDC) Updates

• E-Invoicing Implementation: FPCCI urges a phased rollout over 6-9 months instead of immediate enforcement.
• Sindh IDC on Solar Panels: The Sindh government has agreed to reduce Infrastructure Development Cess (IDC) from 1.85% to 1%, pending withdrawal of court cases.

FPCCI’s High-Level Engagements

The FPCCI delegation, including Gohar Ejaz (ex-Commerce Minister) and S.M. Tanveer (UBG Patron-in-Chief), held meetings with:
✔ PM Shehbaz Sharif
✔ Finance Minister Muhammad Aurangzeb
✔ SAPM Revenue Haroon Akhtar Khan
✔ SIFC & FBR Leadership

Why This Matters

The revised measures prevent business disruptions, curb harassment risks, and promote ease of doing business in Pakistan.