FPCCI Budget 2026-27 Proposals: Tax Relief, SME Growth & Export Boost

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has submitted its budget proposals for 2026-27 to the Ministry of Finance, focusing on tax relief, industrial growth, and export enhancement.

A major highlight of the FPCCI budget 2026-27 proposals is the reduction in income tax for salaried individuals. The organization has suggested lowering the maximum tax rate from 35% to 30% to ease financial pressure on employees.

In addition, FPCCI has recommended abolishing the 9% surcharge imposed on the salaried class. This move is expected to increase disposable income and support middle-income households.

The business body has also proposed the complete elimination of super tax in the upcoming budget. According to FPCCI, removing this tax will encourage investment and improve business confidence across industries.

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To boost exports, FPCCI has urged the government to restore the final tax regime for goods exporters. This step aims to simplify taxation and provide certainty to exporters operating in global markets.

For the IT sector, FPCCI has recommended maintaining the 25% export tax rate until 2035. The proposal highlights the importance of policy consistency to sustain growth in Pakistan’s rapidly expanding technology industry.

Furthermore, FPCCI has suggested increasing the SME turnover threshold from Rs250 million to Rs500 million and reducing the income tax rate for manufacturers from 29% to 20%, aiming to stimulate industrial expansion and economic growth.