Budget 2026-27: FPCCI Proposes Tax Cuts for Salaried Class and Manufacturers; Submits Recommendations to Finance Ministry

Budget 2026-27: FPCCI Proposes Tax Cuts for Salaried Class and Manufacturers; Submits Recommendations to Finance Ministry

ISLAMABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has officially submitted its fiscal proposals for the Federal Budget 2026-27 to the Ministry of Finance. The apex business body has strongly advocated for structural tax relief to ease the burden on fixed-income groups and stimulate industrial manufacturing.

Key Income Tax Reductions Advocated by FPCCI

To incentivize compliance and revive economic growth, the Federation has proposed a significant reduction in direct taxation rates across major sectors:

Salaried Individuals: FPCCI has recommended slashing the maximum income tax rate for the salaried class from 35% to 30%, alongside the complete abolition of the 9% surcharge.

Manufacturing Sector: In a bid to lower the cost of doing business, the proposals urge the government to reduce the corporate income tax rate for manufacturers from 29% to 20%.

Complete Abolition of Super Tax

Addressing corporate concerns, the FPCCI budget document strongly recommends the complete elimination of the Super Tax in the upcoming fiscal year, describing it as a barrier to domestic and foreign direct investment.

Boost for Exports, IT Sector, and SMEs

The apex chamber also highlighted targeted interventions to protect small businesses and accelerate foreign exchange earnings: