Finance Minister Muhammad Aurangzeb has assured business leaders that the government is considering reducing or eliminating super tax in the upcoming budget for fiscal year 2026-27.
The development comes as consultations with key stakeholders gain momentum.
During a virtual meeting with business organizations, the finance minister indicated that the government is working on either eliminating or reducing the super tax in the upcoming budget.
Sources said a formal announcement is expected soon as part of broader economic reforms.
The government is also preparing a package aimed at reviving the real estate sector.
According to sources, there is a proposal to abolish tax on deemed or fictitious income on immovable property, along with a likely withdrawal of Clause 7E of the Income Tax Act.
Officials informed the meeting that capital inflows from Dubai have increased amid the ongoing Middle East situation.
The government is considering offering incentives to overseas Pakistanis to encourage investment in Pakistan’s real estate sector.
The government has also hinted at providing relief to the salaried class in the new budget.
While details remain under discussion, the move is expected to address growing concerns over taxation on fixed-income groups.
Business community demands
Business organizations urged the government to announce the real estate package before the budget.
They also called for reduced tax rates for the export sector, easier access to loans for SMEs, and incentives to boost investment.
Participants emphasized lowering the cost of doing business and ensuring a more business-friendly environment.
There were also calls to reduce taxes on industrial machinery and raw materials to support manufacturing.
Relief measures were discussed for sectors including IT, pharmaceuticals, minerals, mining, and agriculture.
Stakeholders also pushed for an early announcement of a comprehensive industrial policy and stressed the need for phased digitization of the tax system.
Simplifying rules and regulations remained a key demand during the discussions.
