Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has praised the Sindh government's decision to lower the infrastructure development cess, a move anticipated to save businesses hundreds of millions of dollars each year. Atif Ikram Sheikh, FPCCI President, described the cess reduction as a historic breakthrough, noting it would significantly decrease business costs.

According to Federation of Pakistan Chambers of Commerce and Industry, the provincial authorities have brought down the cess rate from 1.85 percent to between 0.80 percent and 0.85 percent. This decision comes after two decades of advocacy by the business sector, offering substantial relief to trade and industry. Additionally, the cess on the Export Facilitation Scheme has been entirely removed, fulfilling a long-standing demand from exporters.

FPCCI Senior Vice President Saquib Fayyaz Magoon highlighted the financial implications, revealing that around Rs350 billion linked to the Sindh Infrastructure Development Cess is currently involved in court disputes. Under the new rules, traders who choose to withdraw these cases will be presented with a structured payment plan, easing their financial burden.

Details of the payment plan include traders paying 15 percent of the outstanding amount by July 31, 2026, another 15 percent by October 31, 2026, and a further 15 percent by July 31, 2027. Magoon noted that the one percent cess reduction would notably improve liquidity for importers.

Abdul Mohamin Khan, FPCCI Vice President and Regional Chairman Sindh, expressed gratitude towards Sindh government officials, particularly Mukesh Kumar Chawla, Zia ul Hassan Lanjar, and Murtaza Wahab, for facilitating the agreement. Khan added that after the initial 45 percent payment over the next 18 months, the remaining 55 percent of the outstanding cess will be payable over 12 years, from 2028 to 2040. This long-term settlement is expected to reduce costs and expedite port clearance processes.

Asif Sakhi, another VP of FPCCI, clarified the differential cess rates under the new framework. Traders with pending court cases who opt for settlement will face a cess rate of 0.85 percent, while those without litigation will be charged 0.80 percent.

The FPCCI leadership remains hopeful that the Sindh government will continue to introduce similar business-friendly measures in the future.