Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has submitted its budget proposals for fiscal year 2026-27 to the Ministry of Finance, recommending significant tax reductions and measures aimed at supporting businesses, exports, and the salaried class.
In its proposals, FPCCI suggested reducing the maximum income tax rate for salaried individuals from 35 percent to 30 percent. The organization stated that lowering the tax burden would provide relief to middle-income earners struggling with inflation and rising living costs.
The business body also recommended abolishing the 9 percent surcharge imposed on salaried taxpayers. According to FPCCI, the surcharge places additional financial pressure on employees and negatively impacts purchasing power.
FPCCI further proposed the complete elimination of super tax in the upcoming federal budget. The organization argued that the tax discourages investment and creates challenges for business expansion and industrial growth in Pakistan.
To encourage exports, FPCCI demanded the restoration of the Final Tax Regime for goods exporters. The chamber believes that reinstating the regime would improve stability in the export sector and enhance the competitiveness of Pakistani products in international markets.
The proposals also included recommendations for the information technology sector. FPCCI suggested maintaining the existing 0.25 percent export tax rate for the IT industry until 2035 to support long-term investment and export growth in the technology sector.
For small and medium enterprises, FPCCI recommended increasing the SME turnover threshold from Rs250 million to Rs500 million. The organization said the move would provide greater flexibility and growth opportunities for smaller businesses.
Additionally, FPCCI proposed reducing the income tax rate for manufacturers from 29 percent to 20 percent. According to the chamber, lower taxation on the manufacturing sector could help increase industrial production, attract investment, and create employment opportunities in the country.
