Business Community Welcomes Tax Relief and Investment Friendly Measures
Reduction in withholding tax, abolition of Section 7E and CVT seen as positive economic steps Sardar Tahir Mehmood,
Interviewers: Dr Waheed M Khan, Ikran Joiya, Hurish Shah
Interviewee: Sardar Tahir Mehmood, President, Islamabad Chamber of Commerce and Industry
Introduction
Sardar Tahir Mehmood is the President of the Islamabad Chamber of Commerce and Industry and is widely recognized as a leading voice of Pakistan’s business community. Throughout his tenure, he has played an active role in promoting private sector participation in economic policymaking and strengthening collaboration between the government and the business community.Under his leadership, ICCI has emerged as a dynamic platform that effectively represents the concerns of traders, industrialists, and entrepreneurs while contributing practical policy recommendations aimed at improving Pakistan’s business climate. He has consistently advocated tax reforms, investment friendly policies, and measures to facilitate sustainable economic growth.
FT: ICCI has stated that several of its recommendations have been included in the Federal Budget 2026-27. Could you highlight some key proposals?
Sardar Tahir Mehmood: Alhamdulillah, a number of proposals submitted by ICCI have been reflected in the Federal Budget 2026-27. This reflects the government’s recognition of constructive engagement with the business community and our continuous efforts for a business friendly economic framework.
FT: Which recommendations do you consider most significant?Sardar Tahir Mehmood:One of the major developments is the reduction in withholding taxes in the real estate sector, which was a long standing demand of ICCI. Similarly, the abolition of Section 7E and the removal of the one percent Capital Value Tax (CVT) on foreign wealth are important measures. These steps will help restore investor confidence and boost economic activity.
FT: Has the salaried class received any relief in the budget?Sardar Tahir Mehmood:Yes, to some extent. ICCI has consistently advocated relief for the salaried class in view of inflationary pressures, and the reduction in tax rates for salaried individuals is a welcome step. We also believe that the tax burden on existing taxpayers should be reduced while expanding the tax net.
FT: What about the digital economy and IT sector?Sardar Tahir Mehmood:ICCI has been strongly advocating policies to promote freelancers, IT exports, and innovation driven enterprises. Measures supporting digitalization and technology initiatives indicate that the government is moving in the right direction.
FT: How do you view developments in the construction and housing sector?Sardar Tahir Mehmood:The construction sector is a key driver of economic growth. Tax reductions and facilitation measures in real estate and housing are encouraging developments that will revive allied industries and generate employment opportunities.
