Karachi: Muhammad Hanif Lakhani, former Vice President of the Federation of Pakistan Chambers of Commerce and Industry, has criticized the Federal Budget 2025-26, labeling it as harmful to the industry. Lakhani expressed concerns over the government’s decision to grant Federal Board of Revenue officers powers similar to those of a Station House Officer, cautioning that this unchecked authority could hinder tax collection efforts.

Lakhani highlighted several anomalies within the federal budget that he believes require urgent attention from the Ministry of Finance. He called for the withdrawal of what he described as harsh and anti-business tax measures before the Finance Bill is presented to Parliament, suggesting that these actions could impede achieving tax targets.

Criticism also extended to the government’s decision to impose an 18% tax on the IT sector, which Lakhani termed ill-advised. He argued for a reduction in the interest rate, proposing it be lowered to 7% in light of declining inflation, suggesting that current policy decisions do not reflect ground realities.

Lakhani raised concerns over the government’s lack of policy for alternative energy sources, pointing to an 18% sales tax on solar panels as a move that would increase costs. He opposed taxes on e-commerce transactions, emphasizing the impact on unemployed youth who rely on e-commerce for income.

While Lakhani supported measures to incorporate non-filers into the tax net and approved of a 10% sales tax in FATA and PATA, he opposed the taxation of petroleum products, citing potential negative impacts on the general public.

Additionally, Lakhani criticized the State Bank of Pakistan’s decision to keep the policy rate at 11%, describing it as overly cautious, especially given the declining inflation and its effects on industrial competitiveness.