The Pakistan Textile Council (PTC) has welcomed the business-and export-oriented measures announced in the Finance Bill 2026–27.
While supporting the overall direction of the budget, PTC proposed additional measures to further strengthen export competitiveness. It urged the government to consider treating the reduced 1.25 percent turnover tax as a final tax for exporters, arguing that this would provide certainty, reduce disputes, and encourage investment.
Alternatively, the Council suggested lowering the corporate tax rate on export income to 15 percent if a final tax regime is not immediately feasible. It said this adjustment would bring Pakistan closer to regional competitors such as Bangladesh and Sri Lanka and support export-led investment inflows.
In separate letters addressed to Finance Minister Senator Muhammad Aurangzeb and Minister of State for Finance Bilal Azhar Kayani, PTC Chairman Fawad Anwar appreciated the government’s efforts to introduce reforms aimed at improving the business environment while maintaining fiscal discipline.
The Council praised the revision of income tax slabs for salaried individuals, stating that it would increase disposable income, support domestic demand, and strengthen the workforce linked to export industries. It also welcomed the rationalisation of the super tax for companies with earnings up to Rs. 500 million, calling it meaningful relief for the productive corporate sector that could encourage reinvestment and expansion.
PTC particularly lauded the government’s move to abolish super tax for exporters, describing it as a strong signal for investors and export-oriented businesses. It said the decision would improve confidence, reduce the effective tax burden on export industries, and align Pakistan’s policies with regional competitors.
The textile body also appreciated the reduction in the combined levy on export proceeds from 2 percent to 1.25 percent, saying it would ease cash-flow pressures and improve liquidity across the sector.
Fawad Anwar said the Finance Bill 2026–27 reflects the government’s focus on export-led growth and stability, adding that further refinements would ensure relief measures are effectively passed on to exporters and support long-term expansion of the sector.