Traders call for tax cuts, super tax abolition in budget proposals

ISLAMABAD: Pakistan Business Forum has submitted budget proposals to the Ministry of Finance for 2026–27, calling for a shift in economic policy towards growth and relief for businesses.

Pakistan Business Forum President Khawaja Mehboob said that the business community was currently facing “widespread frustration” and urged the government to abolish the super tax, which he said was originally introduced as a temporary measure but had become permanent.

He called for targeted steps in the upcoming budget to reduce the cost of doing business and for a gradual cut in corporate tax rates to provide relief to industry.

Mehboob also proposed introducing a fixed monthly tax of 10,000 rupees for traders to expand the tax net, saying that once paid, no further questioning should be carried out. He suggested integrating the fixed tax into electricity bills to simplify collection for both the government and businesses.

He further demanded the removal of sales tax on local cotton seed and oilcake to boost textile exports, saying cotton production had fallen to a 40-year low after the imposition of sales tax in recent years.

The forum also called for a seven-year tax holiday under the Green Pakistan Initiative to promote corporate farming and urged the government to withdraw Section 7A and amend Sections 8 and 8B of tax laws to revive investment in the construction sector.

Mehboob said the budget should move away from a “revenue-generation mindset” and instead focus on economic expansion.

He also proposed restrictions on non-filers holding more than three vehicles, stronger measures against under-invoicing, and reforms to require housing societies to convert into public limited companies to protect public investment.