PESHAWAR: The Sarhad Chamber of Commerce and Industry (SCCI) has presented a comprehensive set of proposals for the federal budget 2026-27, calling for tax rationalisation, business-friendly policies, trade facilitation and measures aimed at industrial growth and improving the ease of doing business.

The chamber’s Research and Development Wing prepared a 17-page document, titled “Enhancing Industrial Competitiveness, Trade Facilitation and Business Environment in Khyber Pakhtunkhwa”, according to a news release issued here on Thursday.

The proposals focus on tariff rationalisation, tax reforms, regulatory simplification and institutional transparency to address the challenges faced by businesses in the province and to promote a competitive and growth-oriented economic environment.

The chamber urged the government to introduce reforms in income tax, sales tax and customs policies to improve the investment climate, strengthen documentation and enhance economic efficiency.

Proposals focus on tariff rationalisation, regulatory simplification, institutional transparency

The SCCI also stressed the need to improve access to finance for small and medium enterprises in Khyber Pakhtunkhwa. It recommended increasing the province’s share in private-sector credit to at least 20 per cent and raising KP’s Advance-to-Deposit Ratio from the existing 0.9pc to a minimum of 7-8pc, noting that the province contributes around 16pc to national deposits.

Highlighting KP’s strategic importance as a gateway for trade with Afghanistan and Central Asia, the chamber called for fast-tracked development of border infrastructure and establishment of one-window facilities for customs clearance, banking, insurance, warehousing, cold storage, testing laboratories and quarantine services.

The proposals also recommended the establishment of a joint Special Investment Facilitation Council-SCCI coordination cell to address investor grievances, streamline licensing procedures and reduce regulatory overlaps between federal and provincial authorities.

The chamber sought a substantial reduction in customs duties on industrial inputs, including printing ink and related materials, to lower production costs and improve the competitiveness of local industries.

It also called for revisions to outdated customs classifications and legal provisions to align them with modern industrial practices.

At the institutional level, the SCCI proposed reforms in the litigation framework of the Federal Board of Revenue and greater transparency through digitisation to reduce compliance burdens and improve predictability in the tax system.

The chamber further recommended rationalisation of taxes imposed on petroleum dealers and regulation of undocumented sectors, including furniture expos, to ensure fair competition and better documentation of the economy.

The proposals also included corporate tax rationalisation, simplification of withholding taxes, harmonisation of sales tax systems and special facilitation measures for SMEs to encourage investment and economic growth.

SCCI president Junaid Altaf urged the government to incorporate the chamber’s recommendations into the upcoming federal budget, saying the proposals were aimed at reducing the cost of doing business, encouraging investment, enhancing documentation and promoting sustainable industrial development.

He said timely and coordinated implementation of the proposed reforms was essential for achieving fiscal stability and long-term economic resilience.

A day ago, Mr Altaf, accompanied by SCCI executive committee member Sajjad Zaheer, attended a meeting of the Senate Standing Committee on Finance, where he called for the abolition of the four per cent further sales tax on supplies to unregistered persons.

Published in Dawn, May 8th, 2026