Government introduces tax relief, faceless systems and simplified schemes to support businesses, exporters, salaried workers and small traders.
The government is committed to reducing the tax burden on businesses, exporters, salaried individuals and small traders through major tax relief measures and structural reforms, Minister of State for Finance and Revenue and Railways Bilal Azhar Kiyani said on Saturday.
Addressing the business community at the Lahore Chamber of Commerce and Industry (LCCI), Kiyani said the government was working to transform the Federal Board of Revenue (FBR) into a more transparent, technology-driven and taxpayer-friendly institution.
He highlighted that super tax had been abolished for exporters and businesses earning between Rs150 million and Rs500 million annually. For companies with income above Rs500 million, the super tax rate had been reduced from 10% to 8%.
Kiyani said exporters had also received relief through a reduction in tax deductions on export proceeds. The deduction had been brought down from 2% to 1.25%, helping reduce the financial burden on the export sector.
The minister said the government was introducing centralized and faceless audit and assessment systems to limit individual discretion and reduce the risks of harassment and collusion. Customs reforms were also being implemented through a faceless system to minimize direct interaction between importers and officials.
He said dedicated FBR facilitation structures had been established in major export hubs, including Karachi, Faisalabad, Lahore and Sialkot, with other cities being gradually incorporated. Exporters were also being included in these structures to ensure their concerns were addressed more efficiently.
Kiyani added that the government had also provided tax relief to salaried individuals by abolishing the applicable surcharge or super tax and reducing rates across most income slabs.
For small traders and shopkeepers, he said a simplified and optional tax scheme had been developed after consultations with business representatives. Participants would generally avoid routine audits related to previous-year differences, while FBR plates would help limit unnecessary official visits.
The scheme would also exempt participating traders from withholding-agent and point-of-sale machine requirements. Kiyani said the initiative was aimed at broadening the tax base, encouraging formalization and ensuring a fairer distribution of the tax burden.
He stressed that the private sector would continue to have a meaningful role in policymaking, with the government seeking regular input from chambers and business organizations to resolve practical challenges.