Islamabad: The Pakistan Business Forum (PBF) has submitted its budget proposals for the fiscal year 2026–27 to the Ministry of Finance, calling for pro-growth policies, reduction in business costs, and expansion of the tax base. A key demand put forward by the forum is the immediate abolition of the super tax, which it says was introduced as a temporary measure but has now effectively become a permanent burden on businesses.
PBF President Khawaja Mehboob stated that the current business environment is marked by uncertainty and declining confidence, with many in the business community feeling discouraged. He emphasized that the upcoming budget must focus on economic growth rather than merely revenue collection, and that easing the tax burden is essential to revitalizing business activity.
One of the central proposals is the gradual reduction of corporate tax rates to provide relief to companies and encourage investment. The forum also stressed the need for targeted steps in the budget to lower the overall cost of doing business, including rationalizing energy costs and simplifying regulatory procedures.
To broaden the tax net, the PBF suggested introducing a fixed monthly tax of Rs. 10,000 for traders. According to the proposal, once this fixed tax is paid, traders should not be subjected to further scrutiny or complex documentation requirements. The forum also recommended integrating this tax into electricity bills to ensure transparency and ease of collection for both the government and traders.
In addition, the forum highlighted the challenges facing the textile sector, particularly the decline in domestic cotton production. It proposed eliminating sales tax on local cottonseed and oilcake to support farmers and boost textile exports. Khawaja Mehboob noted that the imposition of sales tax in recent years has contributed to cotton production falling to a 40-year low.
The PBF further recommended tax exemptions for up to seven years under the Green Pakistan Initiative to promote corporate farming and attract investment in agriculture. It also called for the abolition of Section 7E to revive investment in the construction sector, along with amendments to Sections 8 and 8B to remove bottlenecks affecting businesses.
Among other suggestions, the forum proposed restrictions on non-filers, including limiting them to owning no more than three vehicles. It also urged the government to take strict measures against under-invoicing to prevent revenue leakage and ensure fair competition.
Additionally, the PBF recommended that housing societies be transitioned into public limited companies to enhance transparency and protect public investment. The forum expressed hope that the government would move away from a purely revenue-driven approach in the upcoming budget and instead adopt policies that foster sustainable economic growth and long-term stability.
