KARACHI: Good transporters while expressing serious concern over the government policies, demanded withdrawal of increase in withholding tax on logistics services from 4 percent to 6 percent.
Addressing a press conference here Monday, they said that the most pressing issue they now face is the federal government’s recent decision in the 2025-2026 budget to increase the withholding tax on logistics services from 4% to 6%. This decision, if implemented, will deal a devastating blow to the public service sector — particularly to an already struggling goods transport industry that plays a critical role in Pakistan’s economy.
They said this will increase the problems for small and medium-sized transporters, and inevitably fuel corruption and lawlessness, undermining both government revenue collection and the rule of law.
They said they have already conveyed their serious reservations to the Federal Finance Minister and the Chairman of FBR immediately following the budget announcement. They said that the logistics and transport sector contributes approximately 12.5 percent to Pakistan’s GDP.
They said that there sector is constantly being squeezed by frequent and arbitrary increases in toll tax rates, as well as the sudden imposition of new toll plazas, many of which operate without proper justification — further draining the resources of transporters.
They urged the stakeholders to recognise that every sector of economy is directly dependent on an efficient and functioning transport sector. If this backbone of the economy is weakened, it will directly affect the availability of essential goods across the country and impact the lives of ordinary citizens.
They demanded immediate withdraw the proposed 2% increase in withholding tax on logistics services, and retaining the existing 4% tax rate, ensuring a fair, sustainable environment for the transport sector.
Those who addressed the press conference included Rana Asim Shakoor of Fleet Operators Association of Pakistan, Malik Sher Khan Awan of Karachi Goods Carrier Association, Imdad Hussain Naqvi of Pakistan Car Careers Association, Malik Shehzad Awan of Awan Transport Association, Shabbar Malik of Sindh Goods Truck Trailer Owners Association, Ghulam Yasin Khan of United Goods Transport Alliance, Muhammad Adeel Abbasi of Pakistan Goods Mazda Owners Association, Nisar Hussain Jafari of Pakistan Goods Transport Alliance, Mohammad Ashraf of Transport Career Association, Roofi Jan of Transporters of Goods Association, Muhammad Ramadan o Local Goods Transport Association, and Javed of All Pakistan Supreme Council of Goods Transport.
Copyright Business Recorder, 2025
