The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed tax relief measures for salaried individuals in its budget recommendations for fiscal year 2026-27, urging the government to reduce the income tax burden on fixed-income earners.
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According to the proposals submitted to the Ministry of Finance, FPCCI recommended reducing the maximum income tax rate for the salaried class from 35 per cent to 30 per cent.
The business body said the move would help increase disposable income for salaried citizens and ease pressure from rising living costs and inflation.
FPCCI noted that lowering the tax burden on salaried individuals could improve household financial stability while supporting overall economic activity through higher consumer spending.
In addition to tax relief for employees, the organisation also recommended abolishing super tax, arguing that its removal would provide broader relief to both salaried professionals and the business community.
The proposals further included restoring the final tax regime on goods transport to support export-related activities and reduce compliance challenges.
For the information technology sector, FPCCI recommended maintaining the current 25 per cent export tax framework until 2035 to ensure policy continuity and encourage long-term sector growth.
The chamber also proposed increasing the turnover threshold for small and medium-sized enterprises from Rs250 million to Rs500 million, aiming to expand growth opportunities for smaller businesses.
Meanwhile, FPCCI suggested lowering the income tax rate for the manufacturing sector from 29 per cent to 20 per cent to stimulate industrial output, attract investment and improve competitiveness.
Business leaders said these recommendations are designed to create a more balanced tax structure while addressing concerns raised by both households and businesses over rising economic pressures.
The federal government is currently reviewing budget proposals from multiple sectors ahead of the announcement of the national budget.
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Taxation, inflation management and industrial incentives are expected to remain central themes in the upcoming fiscal plan as authorities seek to balance revenue generation with economic growth targets.
The FPCCI expressed hope that its proposals would help improve business confidence and provide much-needed financial relief to taxpayers.