Call for rationalization of provincial taxes, abolishment of IDC, industrial upgradation and improvement, President Junaid Altaf hopes the KP budget may focus on industrial competitiveness, productive investment
PESHAWAR
Sarhad Chamber of Commerce and Industry urged the provincial government of Khyber Pakhtunkhwa to abolish Infrastructure Development Cess (IDC) on Export, elimination of property tax in industrial estate, reduction in ratio of professional tax, determining social security contribution and minimum wage under provincial economic grounds, decreasing rate of property tax rate on commercial markets, and locality factor, KPRA sale tax, rationalization of other provincial taxes, and special grant for SMEs development in the province.
SCCI called for pragmatic steps to improve, and upgrade the basic infrastructure and facilities in existing industrial estates, besides a long term industrial policy and investment retention in K-P.
The chamber emphasized modernization as well as provision of advanced facilities at border stations to boost the connectivity and trade with regional countries.
It sought one-window facilitation service and further initiatives for ease of doing business and industrial growth for economic stabilization and growth.
These are the key pre-budget recommendations on titled: ‘Industrial Revival, Job Creation and Investment Retention in K-P’, presented by the chamber ahead of the provincial budget for Fiscal Year 2026-27, according to a SCCI budget proposal documents, compiled by its Research and Development Wing, said in press release on Friday.
Through the budget proposal, SCCI made an urgent call for Labour Market reforms, workers welfare and human capital development.
The SCCI proposals identified multiple overlapping provincial levies/taxes, including stamp duty, capital value tax, and Tehsil Municipal Administration charges, especially imposition of double property tax on industrial estates, called for modification and rationalization through taxation and Fiscal Reforms.
Similarly, it stressed the need for reforms in the local government taxation system, through introduction of uniform tax structures across all TMAs, digitization of tax collection and record-keeping systems and establishment of a single-window municipal facilitation system.
The pre-budget proposals document highlighted the concerns of the business community on imposition of Infrastructure Development Cess on Export, describing it as a substantial financial burden on industries, exporters, importers, clearing agents and transit trade operators in KP, and recommended to completely abolish it to boost export from the province.
The SCCI emphasized the need for proactive steps for revival of construction industry, development of mine and mineral sector, with key recommendations increased domestic and foreign investment in mining sector, growth in value-added mineral exports, employment generation in mining regions, enhanced industrial activity and provincial revenue generation and improved utilization of indigenous natural resources
The chamber sought to establish a support fund in collaboration with financial institutions, tax incentives and subsidies and capacity-building and technical support programs to boost the SME sector in K-P.
The SCCI recommended allocation of additional hefty funds for KPEZDMC and SIDB for infrastructure improvement and facilities at for Industrial Estate Hayatabad, Small Industrial Estate Kohat Road Peshawar, economic zones and other industrial estates under the next provincial Annual Development Program (ADP).
Initiatives for infrastructure upgradation programmes, it has proposed the establishment of economic Zones, Small Industrial Estates, Commercial Markets and Bazaars and Industrial clusters and business hubs.
Under the long-term industrial policy, and investment retention, the SCCI proposed policy of export-oriented industrial growth be implemented, besides, development of industrial infrastructure, industrial utilization of underdeveloped lands, youth employment and technical workforce development, promotion of mineral-based and tourism-linked industries, Integration of hydel energy resources with industrial planning, Facilitation-based industrial governance and investment promotion, Develop a Provincial Industrial and Commerce Development Framework with clearly defined targets for industrial investment, manufacturing growth, exports, SME development, employment generation and investment retention, and integrate these targets within future Budget Strategy Papers and Annual Development.
President Junaid Altaf said SCCI believes that the provincial budget should prioritize industrial competitiveness, productive investment, employment generation, labour productivity enhancement, investment retention and ease of doing business rather than short-term revenue maximization.
He hoped that facilitation-oriented governance, policy predictability, regulatory efficiency and institutional coordination must remain central pillars of provincial economic transformation.
SCCI chief reaffirmed its commitment toward constructive engagement with the Government of Khyber Pakhtunkhwa and emphasizes the importance of meaningful public-private collaboration, stakeholder consultation and institutional partnership for development of pragmatic, investment-oriented and growth-driven economic policies capable of delivering sustainable prosperity of Khyber Pakhtunkhwa.
