Karachi, April 17, 2025 — The Karachi Chamber of Commerce and Industry (KCCI) has called on the government to exempt foreign exchange-earning businesses from provincial taxation, aiming to promote economic stability and protect vital inflows into Pakistan’s economy. In its comprehensive tax proposals for the 2025–26 budget, the KCCI highlighted a critical concern: businesses that generate foreign exchange—such as Indenting Agents, Buying Houses, and similar service-oriented operations—are already subject to federal taxation. Since foreign exchange earnings directly influence Pakistan’s national reserves and macroeconomic policies, they are traditionally governed by federal laws. However, KCCI emphasized that some provincial authorities have also started imposing taxes on the same income, creating jurisdictional overlaps and undermining the principle of unified taxation. The KCCI warned that this dual taxation structure discourages businesses from bringing their foreign exchange earnings into the country. “Over-taxation increases the operational burden and disincentivizes the repatriation of valuable foreign exchange into Pakistan, thereby weakening our external account position,” stated a KCCI spokesperson. Moreover, the KCCI pointed out that high tax liabilities at both federal and…