Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President, Muhammad Amaan Paracha, has voiced significant concerns over the federal budget for the upcoming fiscal year, highlighting discrepancies and unexpected tax impositions that have unsettled the business community. Paracha critiqued the new taxes on e-commerce and solar energy, arguing these measures hinder economic growth and innovation.

Paracha criticized the decision to levy taxes on e-commerce transactions, which he described as unjust. He noted that many unemployed youth were finding financial opportunities through e-commerce platforms, and the new tax policy could stifle their potential.

Another area of concern is the 18% sales tax imposed on solar energy. Paracha acknowledged the government's achievement in retrieving Rs. 3 trillion through the termination of Independent Power Producer agreements, which he described as a positive step for the power sector. Yet, he expressed disappointment that instead of developing an effective alternative energy policy, the government opted to tax solar panels, leading to increased market prices. The business community is calling for the immediate withdrawal of this sales tax, he added.

Paracha also noted the budget's failure to provide relief for the agricultural sector and education, which he said were overlooked. Furthermore, he highlighted that over 40% of the federal budget for 2025-26 contains anomalies needing rectification. He emphasized that rising electricity prices have already elevated industrial production costs, and taxing solar panels eliminates a potential source of affordable energy.

Acknowledging the geopolitical and security context, Paracha accepted the necessity of a 21% increase in the defense budget, now set at Rs. 2,550 billion, due to regional tensions and increased security threats.

In addition, he urged the Governor of the State Bank of Pakistan to reduce the interest rate by 3% in the upcoming monetary policy announcement, in an effort to support economic stability.

These remarks reflect widespread dissatisfaction within the business community regarding the government's fiscal strategies and call for immediate revisions to ensure economic growth and stability.