The Pakistan Business Forum has called on the government to abolish super tax and introduce business-friendly reforms in its budget proposals for fiscal year 2026-27. The forum submitted its recommendations to the Ministry of Finance, urging policymakers to prioritise economic growth and reduce the cost of doing business.
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According to forum president Khawaja Mehboob, the business community is currently facing uncertainty and frustration due to high taxation and operational costs. He argued that super tax, initially introduced as a temporary measure, has effectively become a permanent burden on businesses and should now be withdrawn.
The forum also proposed a gradual reduction in corporate tax rates to encourage investment and improve competitiveness. To expand the tax base, it suggested imposing a fixed monthly tax of Rs10,000 on traders, which could be collected through electricity bills. Under the proposal, traders paying the fixed amount would not face further tax-related scrutiny.
In support of export growth, particularly in textiles, the forum recommended removing sales tax on locally produced cotton seed and oil cake. Business representatives argue that taxation on these products has contributed to a decline in domestic cotton production in recent years.
Additional recommendations included tax exemptions for corporate farming projects under the Green Pakistan Initiative, with a suggested seven-year relief period to encourage investment in agriculture. The forum also called for reforms in the construction sector, including the removal of certain tax provisions to revive investor confidence.
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The proposals further urged tighter restrictions on non-filers, including limiting vehicle ownership, and stronger measures against under-invoicing. Business leaders also recommended bringing housing society companies under public limited structures to improve transparency and protect investor interests. The government is expected to review proposals from multiple sectors ahead of presenting the federal budget.