PTBP Web Desk
The Pakistan Business Forum (PBF) has urged the government to adopt a clear pro-growth strategy in the upcoming federal budget, highlighting growing concerns among businesses over rising costs and policy uncertainty.
Speaking on behalf of the forum, PBF President Khawaja Mehboob ur Rehman emphasized that inconsistent policies and increasing tax burdens are discouraging investment and limiting economic expansion. He stressed the need for immediate reforms to restore business confidence.
Call for Super Tax Abolition
A key recommendation in the PBF budget proposals 2026 is the abolition of the super tax. The forum argued that a tax originally introduced as a temporary measure has now become a permanent burden on businesses. According to PBF, removing this tax would significantly ease financial pressure on the corporate sector.
In addition, the forum proposed a gradual reduction in corporate tax rates. It also recommended eliminating Sections 37AA, 37B, 14AC, and 14AD, stating that these provisions complicate the tax system and discourage both local and foreign investment.
Trader Tax Reforms and Documentation
To broaden the tax base, PBF suggested introducing a fixed monthly tax of Rs. 10,000 for traders. The proposal includes integrating this tax into electricity bills to simplify compliance and improve documentation. The forum further recommended that once traders pay this fixed tax, they should not be subjected to additional scrutiny.
Sector-Specific Recommendations
In the textile sector, PBF called for the removal of sales tax on cottonseed and oilcake. The forum noted that current taxation policies have contributed to a sharp decline in domestic cotton production, which has reached multi-decade lows.
For agriculture, the forum proposed a seven-year tax exemption under the Green Pakistan Initiative. This measure aims to promote corporate farming and increase cultivated land, ultimately strengthening food security and exports.
Construction and Investment Measures
The forum also recommended abolishing Section 7E and amending Sections 8 and 8B to revive the construction sector. These changes, according to PBF, would attract investment and stimulate economic activity in real estate and infrastructure development.
Additional proposals include restricting non-filers from owning more than three vehicles and improving transparency in housing societies by converting them into public limited companies.
