Budget 2025-26: No Surprises Plea | Budget News
- KARACHI — As Pakistan prepares its next federal budget,business leaders are advocating for significant tax relief measures.
- Ehsan Malik, CEO of the Pakistan Business Council (PBC), emphasized the need to bolster defense spending through increased export earnings, alongside managing the fiscal deficit.
- The council is advocating for a gradual reduction in corporate and super taxes, as well as the elimination of multiple taxation on inter-corporate dividends.
Business leaders are clamoring for significant tax relief in Pakistan’s upcoming Budget 2025-26.They’re pushing for reductions in the General Sales Tax (GST) and the elimination of the super tax to aid salaried individuals and invigorate the economy. This proactive stance aims to stimulate exports and bolster the nation’s financial independence, as voiced by key figures like Ehsan Malik, CEO of the Pakistan Business Council (PBC), and M. Abdul Aleem of the OICCI. The focus is clear: industry seeks a more competitive environment with decreased tax burdens to drive growth. Further proposals include a gradual decrease in corporate taxes and a push to broaden the tax base. For complete coverage of this pivotal issue, rely on News Directory 3.Discover what’s next as the government weighs these vital recommendations, aiming for economic prosperity.
Pakistan Business Leaders Urge Tax Relief in Upcoming Budget
KARACHI — As Pakistan prepares its next federal budget,business leaders are advocating for significant tax relief measures. Proposals include reducing the general sales tax (GST) and phasing out the super tax to ease the burden on the salaried class and stimulate economic activity.
Ehsan Malik, CEO of the Pakistan Business Council (PBC), emphasized the need to bolster defense spending through increased export earnings, alongside managing the fiscal deficit. The PBC’s proposals aim to incentivize export growth and the indigenization of inputs.
The council is advocating for a gradual reduction in corporate and super taxes, as well as the elimination of multiple taxation on inter-corporate dividends. Malik also pointed out that the current 18% GST rate encourages evasion, arguing that a higher tax-to-GDP ratio should stem from business growth, not increased taxes on those already paying.
Leaders demand tax relief for salaried class and industries to foster enduring economic growth.
M. Abdul Aleem, Chief Executive/Secretary general of the Overseas Investors Chambers of Commerce and Industry (OICCI), called for a fresh approach to the budget. He urged bold measures to broaden the tax net by ensuring proper collection from the trade, services, and agriculture sectors. Aleem also echoed the call for tax relief for salaried individuals and the rationalization of industry taxes to align with regional standards.
Saquib Fayyaz Magoon, Senior Vice-President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), stressed the importance of boosting exports, especially as the government aims for financial independence from the International Monetary Fund (IMF) after the current $7 billion Extended Fund Facility.magoon urged the government to avoid new taxes on export-oriented sectors, as these would increase production costs and reduce global competitiveness.
Jawed Bilwani, President of the Karachi Chamber of Commerce and Industry (KCCI), highlighted the need to enhance industrial competitiveness, promote exports, broaden the tax base, and eliminate structural inefficiencies. He advocated for a clear and predictable tax framework that expands the tax net and fosters a fairer distribution of the tax burden.
Ahmed Azeem Alvi, President of the Site Association of Industry (SAI), urged the government to prioritize industrial growth and exports in the upcoming budget. His recommendations include widening the tax base, capping business income tax at 25%, abolishing the Super Tax, and reversing recent amendments to the Income Tax Ordinance.
What’s next
The government is expected to consider these proposals as it finalizes the budget for fiscal year 2026, balancing the need for revenue with the desire to stimulate economic growth and provide relief to taxpayers.