Footwear sector opposes Third Schedule inclusion

LAHORE: Pakistan Footwear Manufacturers Association (PFMA) has warned against the proposed inclusion of footwear in the Third Schedule of the Finance Bill 2026, saying it could bring about serious practical problems for the sector, hinder documentation process and add more pressure to one of the labor intensive manufacturing industries of Pakistan.

Addressing a press conference organized by the Lahore Chamber of Commerce and Industry (LCCI), PFMA chairman Rashad Islam and former chairman Mansoor Ahsan Sheikh maintained that the industry supported documentation, taxation and revenue collection, but it was very important that the tax policy remained practical and rational enough to cater to the industrial requirements.

"The footwear industry is not asking for any exemption but a fair and practical taxation system which doesn’t penalize those businesses which comply," he added.

He further maintained that the industry supported documentation and national revenue collection.

"However, placing it in the Third Schedule of the Finance Bill may inadvertently lead business to the undocumented sector rather than expanding the tax base," he concluded.

Chairman Rashad Islam observed that manufacturers and retailers who were engaged in documented trade were contributing in taxation, establishing industrial units, setting up retail outlets and creating employment opportunities.