Tax Relief And Burden Both Possible for Freelancers, Salaried Class in FY27 Budget

The federal government is currently considering major tax adjustments for salaried employees of IT exporter companies and freelancers as part of the upcoming federal budget 2026–27.

Sources informed ProPakistani that key proposals under review include reducing taxes for salaried employees of IT companies and freelancers, while at the same time increasing the tax burden on both.

Policymakers are also evaluating a possible harmonized tax structure for IT sector employees and freelancers to bring both groups under a uniform tax framework.

Sources said discussions indicate that relief measures on mobile phone taxation are facing delays or could be withdrawn altogether.

The proposal to reduce the Pakistan Telecommunication Authority (PTA) tax on mobile phones from 25 percent to 18 percent has already been postponed, as ProPakistani reported earlier.

This means the existing 25 percent PTA tax on expensive smartphones will remain unchanged, particularly for devices valued above $500.

Relief for overseas Pakistanis bringing mobile phones into the country is also unlikely, sources added.

The government is said to be maintaining the present tax structure on imported and high-end mobile phones, largely because of the International Monetary Fund (IMF) and revenue uncertainties.

The government is also reviewing policies aimed at protecting local mobile assembly industry players, which could further discourage reductions in import-related phone taxes.

Local assemblers such as Airlink and Lucky Motor Corporation are expected to continue benefiting from the existing structure.

For all matters stated above, the final decision is still under review, but the chances of major tax relief are limited.