The Federal Board of Revenue has signaled the possibility of further tax relief for businesses. The measures could include completely withdrawing super tax and reducing the sales tax burden.
The development came during a meeting of a Senate Finance Committee subcommittee. Business representatives raised concerns about high taxes, expensive financing and rising input costs.
Business leaders also complained about what they described as harassment by FBR officials. They said frequent notices, audits and enforcement actions were creating uncertainty for companies.
Representatives warned that several industries are currently operating at only 40% to 45% capacity. They said the situation could worsen if the government fails to improve the business environment.
The business community also highlighted the departure of several multinational companies from Pakistan. They warned that more companies could shift their operations abroad if high costs and tax pressures continue.
FBR member Hamid Ateeq Sarwar said the government was considering further reductions in the tax burden. He said super tax was among the areas currently under review.
Sarwar also said the government was examining measures to reduce sales tax costs for businesses. The proposed steps could provide relief to companies facing increasing operating expenses.
According to the FBR official, the government has already provided around Rs. 361 billion in tax relief since 2025. The relief was introduced on the directions of the prime minister.
He said the measures included tax relief for salaried individuals, a reduction in super tax and the elimination of super tax for exporters.
Sarwar said the government would continue working to rationalize the tax burden. However, he noted that tax decisions must also consider revenue needs, import requirements and fiscal constraints.
The FBR has also established exporter facilitation committees in Karachi, Lahore, Sialkot, Faisalabad, Islamabad and Multan. These committees are aimed at addressing tax-related concerns faced by exporters.
Business representatives called for reductions in advance and withholding taxes. They also demanded simpler customs duties and easier audit procedures.
They urged the government to broaden the tax base instead of repeatedly increasing taxes on existing taxpayers. They said more businesses and sectors should be brought into the formal tax system.
The business community also raised concerns about frequent FBR notices and audits. They said aggressive enforcement practices were increasing the cost of doing business.
The committee noted that excessive taxation could eventually hurt government revenue. Higher costs may discourage investment and encourage businesses to remain outside the formal economy.
Convener Muhammad Talha Mahmood called for a more business-friendly tax system. He also stressed the need for greater transparency in tax administration.
The possible withdrawal of super tax and reduction in sales tax could provide relief to businesses. However, the final scope and timing of any new tax measures have yet to be announced.
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