Karachi, March 20, 2026 – The Institute of Cost and Management Accountants of Pakistan (ICMAP) has submitted a comprehensive set of revenue proposals to the Ministry of Finance for consideration in the upcoming Federal Budget 2026–27, aimed at broadening the tax base, documenting informal sectors, and generating sustainable revenue.
Prepared by the institute’s Research and Publications Department, the proposals focus on multiple sectors, including luxury consumption, agriculture, digital finance, and corporate services, with an emphasis on equity, compliance, and long-term fiscal stability.
A key recommendation is the expansion of Federal Excise Duty on luxury and harmful goods, including tobacco, sugar-sweetened beverages, luxury vehicles, alcoholic products, and high-end energy usage. ICMAP estimates that such measures could generate between PKR 120–150 billion in additional revenue while discouraging non-essential consumption.
The institute has also proposed a Capital Acquisitions Tax on high-value gifts and inheritances, with progressive rates and exemptions for immediate family members. This measure aims to improve transparency in wealth transfers and align Pakistan with global taxation practices.
For small businesses, ICMAP recommends a simplified micro-entrepreneur regime with a fixed monthly tax of PKR 2,000, which would include basic social protection benefits. This initiative is designed to bring informal businesses into the formal tax net with minimal compliance burden.
In the corporate and financial sector, ICMAP suggests incentives for global trading firms and fintech companies, including concessionary tax rates of 5–15%, to attract investment and boost exports. Additional proposals include support for sukuk and bond markets to deepen capital markets and expand taxable financial activity.
The institute also recommends introducing a standardized agricultural income assessment framework and a Farmer Income Stability Fund to formalize rural income while supporting climate resilience and productivity.
Other key suggestions include simplified licensing for small traders, progressive taxation on corporate service providers, and targeted VAT adjustments. ICMAP believes these reforms will enhance revenue collection, reduce reliance on indirect taxation, and support sustainable economic growth.
The proposals reflect a strategic push toward documentation, modernization, and equitable taxation ahead of Budget 2026–27.