The 2025–26 budget is expected to bring tax relief for various sectors, with a particular focus on the construction industry and industrial imports.
Sources divulged on Monday that a reduction in additional regulatory duty on over 3,500 imported items is likely. There is also a possibility of a 2% to 3% decrease in additional customs duty on imported goods. For the industrial sector, the government may reduce duties on the import of raw materials. Proposals are under consideration to either abolish or reduce the withholding tax on imported raw materials.
The new budget is expected to include a phased reduction in super tax for large companies. However, it is proposed that companies earning an annual profit of Rs150million will continue to be exempt. For companies with annual profits of Rs200million, a reduction in super tax from 1% to 0.5% is being proposed.
Similarly, for companies earning Rs250million annually, a reduction from 2% to 1.5% in super tax is suggested, while for those with profits of Rs300 million, the super tax rate is expected to remain unchanged at 4%. The existing super tax rate for the corporate sector overall is likely to be maintained.
Meanwhile, the construction sector is also expected to benefit from reduced duties on raw materials and a possible cut in withholding tax.
On the other hand, locally manufactured vehicles with an engine capacity of up to 850cc may see a 5.5% increase in GST. GST on domestically manufactured cars is likely to rise from 12.5% to 18%.
