LCCI President Calls for Lower Business Costs, Reviews National Tariff Policy with Tax Officials

By Dr Ansab Ali
Lahore, Pakistan
LAHORE — Director General of the Tax Policy Office, Najeeb A. Memon, said the government’s economic strategy is focused on strengthening the industrial base and boosting exports through business-friendly tax reforms aimed at reducing production costs and encouraging investment.
He was speaking at a meeting held at the Lahore Chamber of Commerce and Industry (LCCI), where he highlighted that reforms related to super tax, social contributions, minimum tax and a new trader scheme are under consideration to simplify the tax system, make it fairer and more effective, and expand the tax base.
LCCI President Faheem Ur Rehman Saigol delivered the welcome address. Senior Vice President Tanveer Ahmed Sheikh, Vice President Khurram Lodhi, Director Tax Policy Office Munir Ahmed Choudhry, Executive Committee Member Amir Ali and other stakeholders were also present.
Separating Policy from Collection
Najeeb A. Memon explained that the Tax Policy Office was established to separate tax policy-making from tax collection, ensuring independent and professional policymaking aligned with national economic goals. The office reports directly to the Finance Minister and prepares transparent recommendations to simplify tax laws and improve the ease of doing business.
LCCI President Saigol termed the separation a positive step toward transparency and a more conducive business environment. He stressed that the upcoming federal budget should prioritize reducing business costs, promoting industrial growth and increasing exports, noting that high energy prices, elevated interest rates and heavy taxation are putting industries under strain.
Concerns Over Business Climate
Saigol warned that many foreign companies are relocating operations abroad, while some Pakistani firms are registering overseas, leading to reduced investment and rising unemployment. He emphasized expanding the tax base to lower the overall burden and suggested using available government data to bring new taxpayers into the system.
He called for a review of the National Tariff Policy to reflect Pakistan’s economic realities, citing high local production costs. He also urged the restoration of the final tax regime, abolition of the Sindh Infrastructure Development Cess and timely issuance of tax refunds.
To integrate more traders into the tax net, Saigol proposed introducing a simple fixed-tax regime and reviewing the minimum tax system for low-margin businesses. He also stressed comprehensive monitoring of tax exemptions granted under SROs and called for balanced, business-friendly enforcement to prevent unnecessary audits of compliant taxpayers.
Reform Proposals and IMF Constraints
Memon said the Tax Policy Office aims to simplify income tax, sales tax and federal excise laws, eliminate disparities and close loopholes enabling tax evasion. He underscored the importance of close collaboration with the business community to address practical challenges and competitive imbalances.
He added that transparency, inclusiveness and trust are the guiding principles of the office, and that policy proposals will be shared with stakeholders before the budget for meaningful consultation and parliamentary approval.
Despite financial constraints under the IMF program, Memon said the government is exploring opportunities in manufacturing, digitalization, ICT and emerging industries. He revealed that options are being considered to gradually reduce or eliminate super tax, while a new trader scheme is being designed to simplify registration and restore confidence.
“‘One size fits all’ does not work in taxation,” he said, emphasizing the need for separate frameworks for large corporations, SMEs and traders.
Senior Vice President Tanveer Ahmed Sheikh also suggested introducing a five-year electric vehicle (EV) policy to provide long-term certainty and attract investment in the sector.