ISLAMABAD: Finance Minister Muhammad Aurangzeb indicated on Monday that the government plans to gradually withdraw the contentious corporate “super tax.” He expressed optimism that comprehensive economic reforms would support further expansion of the capital markets in the upcoming fiscal year.
Addressing the Senate Standing Committee on Finance, Aurangzeb stressed the administration’s dedication to reducing the tax burden on high-earning corporations to encourage greater investment. He stated, “Our objective is clear: we aim to eliminate the super tax. We will persist in our efforts to phase it out incrementally each year.”
The super tax was initially introduced as a temporary measure targeting high-profit sectors to address revenue deficits. However, it has faced persistent criticism from the business community, which views it as a barrier to corporate growth.
During the committee meeting, Senator Abdul Qadir proposed raising the income threshold for exemption from the super tax from Rs500 million to Rs1 billion. Nonetheless, the Federal Board of Revenue (FBR) chairman warned that this adjustment would create an immediate revenue shortfall of Rs250 billion, necessitating alternative tax measures to compensate.
Meanwhile, in a separate address to the Pakistan Stock Exchange (PSX) via video conference, the finance minister conveyed a positive outlook on macroeconomic stability and foreign investment prospects for the 2026-27 fiscal year.
Aurangzeb also highlighted the evolving economic relationship with China, noting that Prime Minister Shehbaz Sharif’s recent visit successfully shifted the China-Pakistan Economic Corridor (CPEC) towards a business-to-business (B2B) model. He remarked, “B2B relations between Pakistan and China are strengthening daily,” and emphasized that Pakistan’s capital market offers exceptional returns. “The profits available in Pakistan’s stock market are unmatched globally, and we anticipate further economic progress in the coming fiscal year.”
