The President of Islamabad Industrial Estate, Omais Khattak has called the current tax system complicated, stating that it hinders industrial growth and discourages both exports and investment.
He urged the government to implement a single-window National Sales Tax Compliance System, reinstate the Final Tax Regime, eliminate the Super Tax, and lower corporate tax rates.
While presenting his budget suggestions, he mentioned that a single-window digital platform is a crucial and modern reform.
Establishing a nationwide integrated system for registration, tax filing, and payment could simplify business operations, minimise tax evasion, and provide the government with improved data, he suggested.
Many countries, particularly Singapore and the UAE, are already reaping the benefits of such integrated digital tax systems.
He pointed out that Pakistan’s corporate income tax exceeds the global average. Currently, it is about 29 percent, while in most countries, the rate is between 21 percent and 24 percent.
Could reducing corporate tax boost employment?
If the government reduces the corporate tax for the manufacturing sector to 25 percent in the budget, it could boost investment, increase industrial output, and create jobs, he added.
He also noted that a key feature of the new budget could be the promotion of a cashless economy.
A large part of Pakistan’s economy still relies on cash transactions, which keeps billions of rupees outside the tax system, adding extra pressure on those already registered.
By encouraging consumers to use digital economic technology and fintech cards, and promoting a shift from cash to digital payments, more individuals can be included in the tax system.
He further mentioned that if the budget provides consumers with a specific discount or reward rate at retail, it could not only improve the economy but also expand the tax base.
Read more: Pakistan telecom companies urged govt for tax cut in fiscal budget 2026-27
