zayan674701@gmail.com
LAHORE:
The Lahore Chamber of Commerce and Industry (LCCI) and the Pakistan Goods Transporters Association have jointly urged the federal government to withdraw the increase in withholding tax on logistic services announced in the federal budget for 2025-26 and swiftly address other critical issues confronting the transport sector.
Speaking at a press conference at the LCCI, Chamber President Mian Abuzar Shad called the increase in withholding tax on logistic services from 4% to 6% a harsh and unjustified blow to the goods transport sector, which is already struggling for survival.
He said that such a move could push the sector to the brink of collapse and demanded that the government immediately reverse the decision and reinstate the previous 4% tax rate.
The LCCI president said that the only general truck stand in Lahore, located on Ravi Link Road, was insufficient due to the city’s expanding population and commercial activity.
He urged the Punjab government to allocate land outside city limits for establishing a modern, international-standard truck terminal, which would facilitate the relocation of goods forwarding agencies outside of urban areas. “This move will help reduce traffic congestion, lower environmental pollution and improve logistic efficiency.”
Leaders of the goods transporters association including President Nabeel Mehmood Tariq, Senior Vice President Haji Irfan Sultan and others also spoke at the press conference.
They criticised the government’s practice of increasing toll taxes every two months, describing it as unbearable for transporters. They said that the establishment of new toll plazas at various locations has opened doors to unjustified extortion, severely impacting the sustainability of transport businesses.
The association leaders denounced the unwarranted fines and harassment by traffic police under the guise of document checking, which not only demoralise drivers but also negatively affect operations and reputation. They stressed that transporters were being penalised for minor issues, which adds to the already immense financial burden.
Warning of dire consequences, they said that the national economy was already under pressure and if immediate steps were not taken to resolve the ongoing issues, transporters would be left with no option but to shut down their operations.
Participants of the press conference called on the government to extend urgent relief to the transport industry to ensure its survival and enable it to continue contributing meaningfully to the economy.
