FPCCI proposes tax cuts for salaried class in budget

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has sent its proposals for the upcoming budget 2026-27 to the Finance Ministry, which include recommendations to provide relief to many sectors, including the salaried class.
Regarding the salaried class, it has been suggested that the maximum rate of Income Tax be reduced from 35 percent to 30 percent and the 9 percent surcharge be completely abolished. There has also been a demand to abolish Super Tax.
The proposals for the business sector are as follows:

• The 25 percent export tax rate on the IT sector should be maintained until 2035
• The SME turnover limit should be increased from Rs 250 million to Rs 500 million
• Income tax for manufacturers should be reduced from 29 percent to 20 percent
• The Final Tax Regime should be restored for Goods Transport to increase exports

These proposals have come at a time when budget negotiations are underway between the government and the IMF and the IMF is already pushing for reducing tax exemptions. It remains to be seen how many of these proposals the government can accommodate in the final budget.