ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry has proposed major tax relief for the salaried class in the upcoming federal budget 2026-27.
In its budget proposals submitted to the Ministry of Finance, FPCCI recommended reducing the maximum income tax rate for salaried individuals from 35 percent to 30 percent. The business body also proposed abolishing the 9 percent surcharge currently imposed on salaried taxpayers.
FPCCI said the relief is needed because many salaried people are facing rising living costs due to inflation. It added that higher taxes have reduced the take-home income of workers, making it harder for families to manage everyday expenses.
The chamber also presented several other tax-related proposals for the business community. These include abolishing super tax, restoring the final tax regime for goods transport, and continuing the 25 percent export tax rate for the IT sector until 2035.
FPCCI further suggested increasing the SME turnover threshold from Rs250 million to Rs500 million. It also proposed reducing the income tax rate for manufacturers from 29 percent to 20 percent.
The proposals are aimed at reducing the tax burden on individuals and businesses, improving purchasing power, and encouraging economic activity in the country.
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