KARACHI: The Pakistan Advertisers Association (PAA) has strongly criticized the hike in Withholding Tax (WHT) announced in the federal budget for FY26, calling it an unsustainable measure and urging the government to reverse the decision immediately.
A delegation from the PAA represented the advertising and marketing communications sector attended the post-budget consultative meeting on Tax Anomalies held at federation house convened by the Federation of Pakistan Chambers of Commerce & Industry (FPCCI).
At the forum, PAA voiced the industry’s collective concern over the recent increase in WHT on specified services, including advertising, from 4 percent to 6 percent, a move they termed as economically punitive and unsustainable. The delegation presented a detailed case outlining the severe impact of the hike, describing it as equivalent to a 17 percent super tax when viewed in relation to average net profit margins of just 15 percent.
Ahmed Kapadia, Chairman PAA said that in an environment already strained by rising HR costs, inflated utility bills, and reduced client spending, this additional tax burden threatens the viability of service-based businesses.
“We urge the government to immediately reverse the hike and rationalize the WHT to 3%, reflecting the true tax liability of compliant service firms”, he added.
The PAA’s written appeal was submitted to FPCCI leadership, calling for immediate advocacy with the Federal Board of Revenue and Ministry of Finance.
This intervention underscores PAA’s commitment to protecting the interests of Pakistan’s advertising and media industry during a period of escalating financial pressure.
Copyright Business Recorder, 2025
