FPCCI holds press conference to release shadow budget

Updated: 5:01 PM PKT — May 26, 2026

A shadow budget for 2026-27, released by the Economic Policy and Business Development think tank in collaboration with the FPCCI, has proposed extensive tax reforms. Key recommendations include reducing the corporate tax rate from 29% to 25%, lowering the maximum tax rate for the salaried class from 35% to 20%, and exempting annual incomes up to Rs 800,000. The proposal also calls for abolishing the super tax on most businesses, eliminating the non-filer category, and reducing the sales tax from 18% to 15% over three years.

The budget also suggests significant structural changes, including a major overhaul of the Federal Board of Revenue (FBR) with separate boards for customs and income tax. Other proposals include introducing a simplified one-page tax return form, reducing the real estate tax rate to a uniform 0.5%, and expediting the resolution of tax-related court cases valued at Rs 5.7 trillion.

Updated: 4:26 PM PKT — May 26, 2026

Ahead of the federal budget for 2026-27, international research body Frontier Economics has recommended significant tax reductions on Pakistan’s mobile services sector to spur digital growth. The report argues that Pakistan has one of the highest tax burdens on mobile services, which is hindering economic progress.

The think tank proposed cutting the overall sales and turnover tax on mobile services from 37 percent to 17 percent, abolishing the 15 percent advance income tax on consumers, and reducing the general sales tax from 19.5 percent to 16 percent. According to the report, these reforms could boost mobile operators’ revenues by 6.4 percent and increase Pakistan’s GDP growth rate from 4.2 percent to 4.5 percent.