FBR considers further tax relief, super tax cuts as businesses seek lower tax burden

The Federal Board of Revenue is weighing further tax relief for businesses, including deeper cuts in super tax and a lighter sales tax load, according to Profit by Pakistan Today. At a Senate Finance sub-committee meeting, business groups cited high taxes, costly energy and financing, and accused FBR field units of harassment. Their leaders said industry was running at only 40-45% capacity and warned rising costs could push more firms to move operations abroad.

FBR member Hamid Ateeq Sarwar told the panel that relief had already begun in 2025, and that further super tax and sales tax cuts were being studied. He said the state had forgone about Rs361 billion in revenue to support businesses. Existing measures include lower taxes for salaried individuals, a cut in super tax, and the removal of that levy for exporters.

Business bodies asked for lower advance and withholding taxes, streamlined customs duties, simpler audits, and action against excessive notices. Tariq Khan Jadoon proposed widening the net by drawing additional segments into the formal economy, rather than loading current taxpayers further. The FBR is also introducing a mobile app for refunds and dedicated facilitation days in major cities, and exporter committees have been set up in six cities. Separately, the committee took up the ongoing goods transport strike, flagging threats to perishable cargo and climbing container detention charges, and convener Muhammad Talha Mahmood pressed for prompt talks with transporters.