FPCCI sends budget proposals for 2026-27 to the Ministry of Finance
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed a reduction in tax rates for the salaried class in the 2026-27 budget.
FPCCI has submitted its budget proposals for 2026-27 to the Ministry of Finance.
The proposals also include relief measures for salaried individuals. According to the recommendations, the income tax rate for the salaried class should be reduced by 5 percent, bringing the maximum rate down from 35 percent to 30 percent.
Similarly, FPCCI has proposed abolishing the 9 percent surcharge imposed on salaried individuals.
The organization has also recommended the complete abolition of the super tax in the upcoming budget. In addition, it has demanded the restoration of the Final Tax Regime for goods transport to help boost exports.
Furthermore, FPCCI proposed maintaining the 25 percent export tax rate for the IT sector until 2035, increasing the SME turnover threshold from Rs250 million to Rs500 million, and reducing the income tax rate for manufacturers from 29 percent to 20 percent.
The FPCCI suggested that reducing the tax burden on the salaried class is pertinant to support consumption, improve purchasing power, and provide relief amid rising inflationary pressures. It argued that high taxation on fixed-income earners has reduced disposable income and slowed overall economic activity.
It further stressed that a fair tax structure, along with broader reforms in direct taxation, would help expand the documented economy, improve tax compliance, and encourage investment in productive sectors.
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