Tax reforms to make system fairer, more effective: Najeeb A Memon

2026-02-13 - 13:36

Director General, Tax Policy Office, Najeeb A Memon, has stated that the government’s economic strategy focuses on strengthening the industrial base and increasing exports. Speaking at the Lahore Chamber of Commerce and Industry, he stated that 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. 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. He 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. Najeeb A Memon said opportunities are being explored in manufacturing, digitalisation, ICT, and new industries. He stated that options are being considered to gradually reduce or eliminate the super tax, and a new trader scheme is being designed to simplify registration and restore trader confidence. He emphasised that “one size fits all” does not work in the tax system and that separate systems are needed for large companies, SMEs, and traders. LCCI President Faheem Ur Rehman Saigol emphasised 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. Artificial Intelligence key driver for future business growth: LCCI