Reduction in Sindh Infrastructure Cess to Facilitate Trade and Industry: LCCI

By Farzana Chaudhry | Reporting from Lahore
Lahore — The Lahore Chamber of Commerce and Industry has welcomed the Government of Sindh’s decision to reduce the Sindh Infrastructure Development Cess from 1.85% to approximately 0.80–0.85%, calling it a positive development for the business community that will facilitate trade and industrial operations across the country.
LCCI President Faheem Ur Rehman Saigol, Senior Vice President Tanveer Ahmed Sheikh, and Vice President Khurram Lodhi stated that the reduction in SIDC is a step in the right direction, aligning with the Lahore Chamber’s longstanding demand for the rationalization and eventual abolition of the cess.
They noted that the reduction will lower the cost of importing raw materials, machinery, and intermediate goods — particularly benefiting export-oriented industries that rely heavily on imports for value addition. By easing input costs, the measure will provide meaningful relief to manufacturers and exporters already operating under tight margins due to high energy and financing costs.
The LCCI office-bearers further highlighted that the reduction would improve the price competitiveness of Pakistani products in both domestic and international markets by lowering transactional costs associated with imports. Importers stand to benefit from reduced upfront costs and improved liquidity, while exporters would gain from lower production expenses, enabling them to compete more effectively in regional and global markets.
They also pointed out that one of the most significant benefits of the reduction would be a likely decrease in long-running litigation between businesses and Sindh authorities over SIDC. The cess had been a persistent source of legal disputes and compliance uncertainty, driving up administrative costs for both industry and government alike. A lower rate is expected to encourage greater compliance, reduce legal friction, and foster a more stable and predictable business environment.
However, the LCCI leadership emphasized that while the cess has not been fully abolished — as the Chamber has consistently advocated — the reduction will still provide partial relief to the business community. They reiterated that the complete elimination of SIDC remains essential to significantly reduce the cost of doing business, ensure smoother trade operations, and strengthen Pakistan’s export competitiveness on a sustainable basis.
The LCCI urged the relevant authorities to take the decisive step of abolishing the cess altogether in order to enhance investor confidence, ensure ease of doing business, and support robust export-led economic growth for Pakistan.
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