Karachi, May 9, 2025 – A strong call has emerged from the foreign business community in Pakistan, urging the government to abolish the super tax in the upcoming federal budget for 2025–26.
The appeal comes from the Overseas Investors Chamber of Commerce and Industry (OICCI), which represents a significant portion of foreign investors operating in the country.
In their formal budget proposals, foreign investors argued that the super tax, introduced under Section 4C of the Income Tax Ordinance, 2001, continues to place an unfair burden on a narrow base of compliant, high-earning taxpayers. This group, which includes many foreign investors, contributes a disproportionate share of the national tax revenue. “The continuation of this tax has made Pakistan less attractive in comparison to other regional economies,” the OICCI noted.
The foreign investors have not only requested the complete removal of the super tax but have also proposed a gradual phasing out if an immediate repeal is not feasible. They suggest increasing the minimum threshold for application of the super tax to Rs300 million as an interim measure, which would at least ease the pressure on smaller, yet compliant, firms.
According to the OICCI, eliminating the super tax would not only provide relief to existing taxpayers but would also send a powerful signal of economic reform and business-friendly policy to foreign investors and multinational corporations looking to invest in Pakistan. “It’s about creating a stable and predictable fiscal environment,” the chamber stated, emphasizing that long-term planning and reinvestment are hindered by unpredictable tax burdens.
The Karachi Tax Bar Association (KTBA) has also reinforced this demand, labeling the super tax as a remnant of a crisis measure that has outlived its purpose. Initially introduced under Section 4B for short-term fiscal needs, it has since morphed into a persistent and unjustified levy, KTBA stated.
Both the KTBA and OICCI have stressed that repealing the super tax will promote business expansion, enhance economic confidence, and make the country more appealing to foreign investors. A phased withdrawal over the next three years, as suggested by the OICCI, is seen as a balanced approach that addresses both fiscal concerns and investor apprehensions.