Pakistan’s salaried class may receive significant tax relief in the upcoming federal budget 2026–27, as business representatives have submitted a set of detailed proposals to the Ministry of Finance. The recommendations have been presented by the Federation of Pakistan Chambers of Commerce and Industry, which has urged the government to reduce the financial burden on fixed-income earners and improve overall economic balance.
One of the key proposals suggests reducing the income tax rate for salaried individuals from 35% to 30%. According to the chamber, this adjustment would increase disposable income for employees, helping them cope with rising inflation and daily living expenses. It is also expected to stimulate consumer spending, which could indirectly support economic activity across multiple sectors.
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Another major recommendation includes the complete abolition of the super tax. Business leaders argue that removing this tax would not only benefit salaried individuals but also ease pressure on corporate entities, encouraging investment and business expansion. The proposals also emphasize restoring a final tax regime for goods transportation to strengthen export competitiveness.
In the IT sector, the proposals suggest maintaining the current 25% export tax rate until 2035 to ensure stability for digital businesses and attract long-term investment. Additionally, the definition of small and medium enterprises (SMEs) could be revised by increasing the turnover threshold from 25 crore to 50 crore rupees, allowing more businesses to access growth incentives.
For the manufacturing sector, a reduction in income tax from 29% to 20% has also been recommended. Experts believe this step could help boost production, attract new investment, and create employment opportunities.
Overall, the proposed reforms aim to support the salaried class, strengthen the business environment, and create a more balanced taxation system. If adopted, these measures could play a key role in shaping Pakistan’s economic direction in the coming years and improving financial stability for millions of households across the country.
