ISLAMABAD: A delegation of the Islamabad Chamber of Commerce and Industry (ICCI) led by its President Sardar Tahir Mehmood held a meeting with Dr. Najeeb Ahmed Memon, Director General Tax Policy at the Ministry of Finance, and submitted the Chamber’s budget proposals for the fiscal year 2026–27 aimed at facilitating businesses and promoting economic growth.
Dr. Najeeb Ahmed Memon said that the budget-making process is being carried out in close consultation with stakeholders to ensure that the tax regime does not place an undue burden on taxpayers.
He assured the delegation that the proposals submitted by the Islamabad Chamber would be carefully reviewed and considered for incorporation in the upcoming budget proposals.
Sardar Tahir Mehmood said that a stable and business-friendly taxation framework is essential for strengthening economic activity, promoting documentation of the economy and supporting productive sectors. He said that the Chamber had prepared its recommendations after consultation with various segments of the business community. He added that the proposals have been formulated by keeping in mind the facilitation for the business community, especially the small traders all over the country.
ICCI recommended that digital payments made by Tier-1 retailers should be exempted or granted relief from additional taxes in order to encourage the use of POS systems, banking channels and digital wallets, while discouraging excessive reliance on cash transactions.
It proposed facilitation for the handicrafts and carpet sector through relaxation in input invoice requirements and the introduction of a fixed GST rate of up to 3 percent, stating that the sector largely consists of small traditional businesses and simplified taxation would help promote exports and preserve traditional crafts.
For the jewellery sector, the ICCI suggested that gold stock of jewellers should be assessed in weight (grams/tolas) instead of monetary value. The delegation explained that fluctuations in international gold prices artificially increase the value of stock without reflecting actual income, as jewellers often work on gold provided by customers for making or redesigning jewellery.
ICCI further proposed exemption of GST on optical frames, glasses and lenses at both import and retail levels, highlighting that optical products are essential medical devices used for vision correction and should be treated as healthcare necessities rather than luxury retail items.
The delegation included ICCI Senior Vice President Tahir Ayub, former Senior Vice President Abdul Rehman Siddiqui, and Finance Secretary of Islamabad Jewelers Association Ibrar Ahmed.
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