KARACHI: State Minister for Finance Bilal Azhar Kiani has said that proposals for relief to the salaried class and measures to broaden the tax base by bringing retail and wholesale sectors into the tax net would be considered in the upcoming budget formulation process.

He said the government values constructive input from chambers of commerce and industry stakeholders during ongoing budget consultations.

While reviewing proposals submitted by the Overseas Chamber of Commerce and Industry (OICCI) during a meeting on April 19, the minister acknowledged the importance of maintaining an investment-friendly fiscal environment. He assured foreign investors that the government recognises the need to streamline the tax structure to support economic growth.

OICCI emphasised the need for a more equitable tax framework in which all segments of the economy — including agriculture, retail and wholesale trade, real estate, and services — contribute proportionately to national revenues.

The chamber recommended reducing the corporate tax rate to 28 per cent in FY27, with a phased reduction to 25pc over the following three years. It also called for a gradual abolition of the super tax during the same period. It noted that when corporate tax is combined with the super tax, Workers Welfare Fund (WWF), and Workers Profit Participation Fund (WPPF), the effective tax burden on companies approaches 46 per cent, making Pakistan less competitive regionally.

OICCI said a high tax burden on the banking sector could constrain economic growth by limiting banks’ ability to deploy capital efficiently and by increasing the cost and reducing the availability of working capital for businesses.

It recommended abolishing the 10pc surcharge on higher-income salaried individuals and capping the maximum personal income tax rate at 25pc.

Published in Dawn, April 21st, 2026