KCCI hails reduction in Infrastructure Development Cess

KARACHI, (UrduPoint / Pakistan Point News - 25th Feb, 2026) President Karachi Chamber of Commerce and Industry (KCCI) Rehan Hanif, appreciating the Sindh Government’s decision to reduce the Infrastructure Development Cess (IDC), on Wednesday termed it a major relief for the business community and a positive step toward reduction in the cost of doing business.

Rehan Hanif, in a statement issued here, elaborated on the broader implications of the Sindh Government’s decision, stating that the reduction in Infrastructure Development Cess from 1.85% to approximately 0.80–0.85% represents a substantial rationalization of trade-related costs and aligns with internationally accepted principles of trade facilitation and fiscal prudence.

Highlighting the efforts of KCCI for rationalization of IDC, he appreciated the introduction of a structured Settlement Agreement mechanism under the amended framework, describing it as a mature and forward-looking step that provides legal clarity, reduces administrative ambiguities, and creates a predictable pathway for resolving outstanding liabilities.

Rehan Hanif particularly welcomed the exemption of goods under the Export Facilitation Scheme (EFS) from the levy of IDC, terming it a strategic move that directly enhances export competitiveness, will improve pricing efficiency and support Pakistan’s export growth objectives.

He underscored that this achievement reinforces the effectiveness of constructive public-private engagement and reflects the Sindh Government’s willingness to support economic stabilization and growth.

He expressed hope that this spirit of collaboration would continue, particularly in addressing other critical issues affecting industry and trade, including taxation rationalization, regulatory simplification, and infrastructure improvements.