On June 23, the Pakistan Advertisers Association (PAA) expressed strong opposition to the recent increase in Withholding Tax (WHT) announced in the federal budget for FY 2025-26, terming it unsustainable and calling for its immediate reversal.

A PAA delegation representing the advertising and marketing communications sector participated in the Post-Budget Consultative Meeting on Tax Anomalies held at the Federation House. The meeting was convened by the Federation of Pakistan Chambers of Commerce & Industry (FPCCI). During the session, the PAA highlighted the industry’s collective concerns over the hike in WHT on specified services, including advertising, from 4% to 6%. The association described the increase as economically punitive, equating it to a 17% super tax when compared to average net profit margins of 15%.

Ahmed Kapadia, Chairman of PAA, stated that the added tax burden posed a serious threat to the sustainability of service-based businesses already impacted by rising human resource costs, high utility bills, and decreased client spending.

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

The PAA submitted a written appeal to the FPCCI leadership, requesting urgent engagement with the Federal Board of Revenue and the Ministry of Finance.

The association’s participation in the forum reaffirmed its commitment to advocating for the advertising and media industry’s interests amid increasing economic pressures.