The Pakistan Business Forum has presented its budget recommendations for the fiscal year 2026–27 to the Ministry of Finance, emphasizing a shift in economic policy towards fostering growth and easing burdens on businesses.
Forum President Khawaja Mehboob highlighted the widespread frustration within the business community, urging the government to eliminate the super tax. Originally introduced as a temporary measure, Mehboob noted that the super tax has effectively become permanent, causing significant strain on businesses.
He advocated for targeted initiatives in the upcoming budget aimed at lowering the cost of doing business, including a phased reduction in corporate tax rates to provide much-needed relief to the industrial sector.
In a notable proposal, Mehboob suggested implementing a fixed monthly tax of 10,000 rupees for traders to broaden the tax base. He recommended that once this tax is paid, traders should not face further inquiries, and proposed integrating this fixed tax into electricity bills to streamline collection for both the government and businesses.
Further demands included the removal of sales tax on local cotton seed and oilcake to support textile exports. Mehboob pointed out that cotton production has dropped to a 40-year low following the imposition of sales tax in recent years.
The forum also called for a seven-year tax holiday under the Green Pakistan Initiative to encourage corporate farming. Additionally, it urged the government to repeal Section 7A and amend Sections 8 and 8B of tax legislation to stimulate investment in the construction sector.
Mehboob emphasized that the budget should move away from a narrow focus on revenue generation and instead prioritize economic growth and expansion.
Other recommendations included imposing restrictions on non-filers owning more than three vehicles, enhancing measures against under-invoicing, and reforming housing societies by requiring them to convert into public limited companies to safeguard public investments.
