The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has submitted a series of proposals to the Ministry of Finance for the budget 2026-27, including major tax relief measures for salaried individuals and businesses.
Among the key recommendations is a proposal to reduce income tax rates for the salaried class by five per cent, lowering the maximum tax rate from 35 per cent to 30 per cent. The FPCCI has also proposed abolishing the nine per cent surcharge imposed on salaried taxpayers and increasing the non-taxable income threshold from Rs600,000 to Rs1.2 million annually. To encourage exports, the business body recommended restoring the Final Tax Regime for goods exporters, while also suggesting that the existing 25 per cent export tax rate for the IT sector should remain in place until 2035. FPCCI President Atif Ikram Sheikh said the country’s IT exports could increase from $3.8 billion to $10 billion if supportive policies were maintained. The organisation further proposed increasing the turnover threshold for small and medium enterprises (SMEs) from Rs250 million to Rs500 million and linking it to the Consumer Price Index (CPI) for budget 2026-27.
In addition, the FPCCI recommended reducing the income tax rate for manufacturers from 29 per cent to 20 per cent and called for the complete abolition of super tax, arguing that it discourages investment. Speaking on the economy, Atif Ikram Sheikh said Pakistan had faced significant economic challenges in 2022 but was now progressing steadily towards economic stability due to what he described as the tireless efforts of Prime Minister Shehbaz Sharif and military leadership. He also stated that Marka-e-Haq had demonstrated the nation’s ability to respond to external aggression, while praising Pakistan’s role in efforts to resolve tensions between Iran and the United States in the Middle East.