PAA urges reversal of unjustified WHT hike at FPCCI post-budget forum

June 23, 2025 (MLN): A delegation from the Pakistan Advertisers Association (PAA) today represented the advertising and marketing communications sector at the Post-Budget Consultative Meeting on Tax Anomalies 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 Withholding Tax (WHT) on specified services, including advertising, from 4% to 6%, 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% super tax when viewed in relation to average net profit margins of just 15%, as per the press release issued.

“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,” said Ahmed Kapadia, Chairman Pakistan Advertising Association.

He further added, “We urge the government to immediately reverse the hike and rationalize the WHT to 3%, reflecting the true tax liability of compliant service firms.” 

The PAA’s written appeal was submitted to FPCCI leadership, calling for immediate advocacy with the Federal Board of Revenue and the 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.