ISLAMABAD: The business community has submitted important suggestions to the government for preparing the budget for the new fiscal year.
In the budget preparation phase for the new fiscal year 2026-27, the business community has demanded the abolition of super tax, a gradual reduction in corporate tax, a proposal to impose a fixed tax of Rs 10,000 per month on traders to increase the tax net and collect it in electricity bills, a proposal to abolish sales tax on auto parts, reduce import duty from 35% to 10%, increase the limit of used vehicles from 3 to 5 years, and increase the financing limit of vehicles from Rs 3 million or keep it open-ended.
The business community said that non-filers should not be allowed to own more than three vehicles. It was recommended to provide 10 percent export rebate on value-added garments and 50 percent subsidy on eco-friendly machinery in the textile sector. In addition, it was demanded to abolish GST on local cotton seed to increase textile exports and provide a 7-year tax exemption to increase corporate farming.
According to the document, an additional 5.5 percent tax was imposed on the dairy sector to register businesses, withdrawal of additional tax, reduction of tax on milk, formula milk and other products.
Duty-free access to Asia along with Europe, ASEAN and Turkey was proposed under “Brand Pakistan”. It has been proposed to provide 2030 tax exemptions to IT and software startups, and grants of up to Rs 20 million for AI and blockchain.
