The Pakistan Footwear Manufacturers Association has urged the government to reconsider a proposal in the Finance Bill 2026 to place the footwear sector under the Third Schedule, warning that the move could discourage documentation and increase pressure on a labor-intensive industry.
Addressing a press conference at the Lahore Chamber of Commerce and Industry, PFMA Chairman Rashad Islam said the industry supports taxation and documentation efforts but believes fiscal measures should be aligned with business realities.
He argued that bringing the sector under the Third Schedule could unintentionally drive businesses back into the informal economy instead of expanding the tax base.
Islam said documented manufacturers and retailers are already contributing taxes, investing in production facilities, maintaining retail networks, and generating employment.
Additional compliance burdens, he warned, may shift consumers toward undocumented channels, leading to greater informality and tax leakage.
Former PFMA chairman Mansoor Ahsan Sheikh also attended the briefing, where industry representatives emphasized that they were not seeking tax exemptions but a fair and workable system that supports compliant businesses and sustains growth in one of Pakistan’s largest employment-generating manufacturing sectors.
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