Karachi, April 15, 2025 – The Karachi Chamber of Commerce and Industry (KCCI) has urged the government to exempt fast-moving consumer goods (FMCGs) from advance tax collection under Sections 236G and 236H of the Income Tax Ordinance, 2001. These proposals were submitted as part of KCCI’s recommendations for the Federal Budget 2025-26. The KCCI emphasized that the current tax regime unfairly burdens several key sectors, particularly those dealing in essential goods. Among the most impacted are the Pulses and Beverages sectors, which fall within the broader category of FMCGs. The advance tax requirement on transactions between manufacturers, importers, and retailers inflates operational costs, which are then passed on to consumers—fuelling inflation, especially for food items. The KCCI expressed concern over the exclusion of pulses from the negative list of exempted goods, despite their importance as a staple food. This omission increases distribution costs, disproportionately affecting low-income households and small-scale businesses. Additionally, KCCI noted that FMCG manufacturers in the beverage segment are facing discriminatory treatment, as they remain subject to tax collection obligations not applied to other FMCG categories. In its formal…