The government will consider proposals for relief to salaried individuals and measures to expand the tax base by bringing retail and wholesale sectors into the tax net during the upcoming budget process, State Minister for Finance Bilal Azhar Kiani said. The remarks came during a meeting with the Overseas Chamber of Commerce and Industry, where budget proposals from foreign investors were reviewed. The minister said input from chambers of commerce and industry stakeholders is being incorporated into budget consultations and acknowledged the need to maintain an investment-friendly fiscal framework.
He said the government is examining ways to simplify the tax structure to support economic activity. The chamber called for a broader and more equitable tax system, recommending that sectors including agriculture, retail and wholesale trade, real estate and services contribute proportionately to revenue collection. Among its proposals, OICCI recommended reducing the corporate tax rate to 28% in FY2026-27, followed by a phased cut to 25% over the next three years.
It also proposed the gradual removal of the super tax over the same period. The chamber noted that when corporate tax is combined with super tax, Workers Welfare Fund and Workers Profit Participation Fund, the effective tax rate rises to around 46%, affecting competitiveness. It also raised concerns over high taxation on the banking sector, stating that it could limit lending capacity and increase the cost of capital for businesses. For salaried individuals, OICCI recommended abolishing the 10% surcharge on higher-income earners and capping the maximum personal income tax rate at 25%.