Businesses in Pakistan could be in line for major tax relief, with the Federal Board of Revenue (FBR) signaling that super tax may be reduced further or potentially withdrawn altogether as the government seeks to ease pressure on companies and revive investment.
At a meeting of the Senate Standing Committee on Finance’s sub-committee, business representatives warned that the difficult operating environment was discouraging investment, with industries reportedly operating at only 40-45% capacity.
Mian Zahid Hussain of the Federation of Pakistan Chambers of Commerce and Industry and Tariq Khan Jadoon called for lower advance and withholding taxes, rationalized customs duties and simpler audit procedures.
They also warned that more multinational companies could leave Pakistan if conditions failed to improve.
FBR Member Hamid Ateeq Sarwar said the government had already provided around Rs361 billion in tax relief since 2025 and was considering further reductions, including in super tax and sales tax. He said exporters had already received super tax relief.
The committee stressed the need for a business-friendly tax regime, broader tax base, transparent governance and measures to attract investment and support industrial growth.
FBR also highlighted reforms aimed at improving taxpayer facilitation and resolving business-related tax concerns.
