The government has unveiled a series of tax relief measures and reforms aimed at lowering the cost of doing business, supporting exporters, easing the tax burden on salaried individuals and simplifying compliance for small traders, Minister of State for Finance, Revenue and Railways Bilal Azhar Kiyani said on Saturday.
Addressing members of the Lahore Chamber of Commerce and Industry (LCCI), Kiyani said the government was also overhauling the Federal Board of Revenue (FBR) to make it more transparent, technology-driven and focused on facilitating taxpayers rather than creating hurdles.
He said the super tax had been abolished for exporters and businesses earning between Rs150 million and Rs500 million annually. For companies with income exceeding Rs500 million, the rate had been reduced from 10 percent to 8 percent. Exporters have also been given relief through a reduction in tax deducted on export proceeds from 2 percent to 1.25 percent.
The minister said the FBR was introducing a new Tax Operating Model under which audits and assessments would be conducted through a centralised, faceless system. Powered by a customer relationship management (CRM) platform, the mechanism would rely on taxpayers’ returns and predefined risk parameters to reduce unnecessary discretion, curb harassment and limit opportunities for collusion.
Kiyani said the government wanted the private sector to play a greater role in shaping economic policy. He noted that, before the federal budget, business chambers had been invited to present their proposals directly so that practical recommendations could be reflected in government decisions.
To improve engagement with exporters, dedicated FBR facilitation centres have been established in Karachi, Lahore, Faisalabad and Sialkot, with plans to expand the initiative to Multan, Hyderabad and other cities. Exporters have also been included in these committees to ensure their concerns are addressed promptly.
The minister added that the Export Development Fund had been restructured, with an exporter appointed as chairman and leading industry representatives included on its board to strengthen private-sector participation in export-related decisions.
He also announced a simplified tax scheme for small traders developed in consultation with business representatives. Under the new framework, participating shopkeepers would generally be exempt from routine audits, would not be required to act as withholding agents or install point-of-sale machines, and would receive official FBR identification plates to help protect them from unnecessary inspections.
Speaking on the occasion, LCCI President Faheem Ur Rehman Saigol welcomed recent improvements in key economic indicators, including record remittances and an upgrade in Pakistan’s sovereign credit rating by Moody’s. However, he said high electricity tariffs, the rising cost of doing business, taxation and regulatory challenges continued to weigh heavily on industry.
Saigol also urged the government to broaden the tax base, protect productive agricultural land and adopt a consultative approach to the proposed relocation of thousands of industrial units, warning that the country currently lacked the infrastructure to support such a large-scale move.
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