The Federation of Pakistan Chambers of Commerce and Industry submitted FPCCI Budget Proposals to the Ministry of Finance for 2026-27, seeking major tax relief for salaried individuals and businesses.
The business body proposed cutting salaried income tax rates by five percentage points and lowering the maximum rate from 35% to 30%.
FPCCI also recommended abolishing the 9% surcharge on salaried taxpayers and raising the annual non-taxable income threshold from Rs600,000 to Rs1.2 million.
For exporters, the chamber sought restoration of the Final Tax Regime for goods exporters. It also proposed keeping the IT sector’s 25% export tax rate in place until 2035.
FPCCI President Atif Ikram Sheikh said Pakistan’s IT exports could rise from $3.8 billion to $10 billion if policymakers maintain supportive measures.
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The chamber recommended increasing the small and medium enterprise turnover threshold from Rs250 million to Rs500 million and linking it to the Consumer Price Index.
FPCCI also proposed reducing the income tax rate for manufacturers from 29% to 20%. It called for abolishing the super tax, saying the levy discourages investment.
Sheikh said Pakistan had moved toward economic stability after major challenges in 2022. He credited Prime Minister Shehbaz Sharif and military leadership for what he called efforts to support recovery.
