Summary FPCCI has proposed reducing income tax rates, abolishing surcharge, and offering business incentives in Budget 2026-27 to ease burden on salaried individuals.
ISLAMABAD (Dunya News) - The Federation of Pakistan Chambers of Commerce and Industry has submitted its budget proposals for fiscal year 2026-27 to the Ministry of Finance Pakistan, recommending significant tax relief measures for the salaried class.
According to the proposals, FPCCI has suggested reducing the maximum income tax rate for salaried individuals by five percentage points, bringing it down from 35 per cent to 30 per cent. The business body also called for the complete abolition of the 9 per cent surcharge currently imposed on salaried taxpayers.
The organization stated that these measures would help ease the financial burden on individuals facing rising inflation and declining purchasing power.
Key proposals
In addition to relief for the salaried class, FPCCI has put forward several broader economic recommendations, including:
1 Abolition of super tax
2 Restoration of the final tax regime for goods transport to boost exports
3 Continuation of a 25 per cent export tax rate for the IT sector until 2035
4 Increase in SME turnover threshold from Rs250 million to Rs500 million
4 Reduction in income tax rate for manufacturers from 29 per cent to 20 per cent
