Karachi, March 2, 2025 – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed the removal of withholding tax on sales to retailers, arguing that the measure will facilitate business growth and ease the tax burden on traders. As part of its budget proposals for the fiscal year 2025-26, the FPCCI has submitted recommendations to address issues related to withholding tax on retailers, distributors, dealers, and wholesalers. The organization emphasized that the Finance Bill 2024 had significantly widened the scope of advance tax on sales, covering all sectors of the economy, while also increasing tax rates for non-filers within the distribution network. According to the FPCCI, the withholding tax rate for non-filing distributors, dealers, and wholesalers was raised from 0.10% to 2%, whereas for non-filer retailers, the rate increased from 0.5% to 2.5%. The FPCCI has urged the government to reconsider these hikes and withdraw or reverse the withholding tax on sales to dealers, distributors, wholesalers, and retailers. The trade body believes that removing these taxes will encourage tax compliance and facilitate smoother business operations. Turnover Tax of 1.25% The FPCCI also raised concerns about the existing 1.25% turnover tax, arguing that it is excessively high. Due to this elevated rate, many businesses prefer to conduct cash…