Budget 27-2026: Proposal to reduce income tax for salaried class

ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has submitted proposals for Budget 27-2026 to the Ministry of Finance, which specifically emphasizes providing relief to the salaried class.

The FPCCI has proposed that the income tax rate on the salaried class be reduced from 35 percent to 30 percent so that the income of citizens can be increased and daily expenses can be reduced.

The Federation of Pakistan Chambers of Commerce and Industry says that this measure will significantly reduce the financial burden of the salaried class and will also have a positive impact on the country’s economy.

In addition, the FPCCI has proposed to completely abolish the super tax, which will provide relief not only to salaried individuals but also to the business community. The proposals also include a recommendation to restore the final tax regime on goods transport to promote exports.

Regarding the IT sector, suggestions have also been made that the current 25 percent export tax rate should be maintained till 2035, while the turnover limit for SMEs should be increased from Rs 250 million to Rs 500 million so that small businesses can get growth opportunities.

In addition, it has been recommended to reduce the income tax rate for the manufacturing sector from 29 percent to 20 percent, which is said to be aimed at increasing production and promoting investment.

The FPCCI is of the opinion that these proposals will help improve the financial condition of the salaried class, activate the business environment and establish balance in the country’s economy.