The Pakistan Business Forum has submitted its budget proposals for fiscal year 2026-27, calling for lower taxes, simpler regulations, and a stronger focus on economic growth to restore business confidence.
PBF President Khawaja Mehboob ur Rehman said businesses are facing rising costs and policy uncertainty, urging the government to adopt a clear pro-growth direction in the upcoming budget.
Tax Relief and Policy Changes
The forum has called for the abolition of the super tax, stating that a measure introduced temporarily has now become a permanent burden on businesses.
It also proposed a gradual reduction in corporate tax rates and recommended removing Sections 37AA, 37B, 14AC, and 14AD, arguing that these provisions increase complexity and discourage investment.
To broaden tax collection, the PBF suggested a fixed monthly tax of Rs. 10,000 for traders, proposing that once paid, traders should not face further scrutiny.
The forum also recommended integrating this tax into electricity bills to simplify compliance and improve documentation.
Sector Specific Proposals
In the textile sector, the forum urged the removal of sales tax on cottonseed and oilcake, noting that current taxation has contributed to domestic cotton production falling to a multi-decade low.
For agriculture, it proposed a seven-year tax exemption under the Green Pakistan Initiative to promote corporate farming and bring more land under cultivation.
The PBF also recommended abolishing Section 7E and amending Sections 8 and 8B to revive construction activity and attract investment.
Additional measures include restricting non filers from owning more than three vehicles and improving transparency in housing societies by converting them into public limited companies.