Karachi, March 16, 2026 – The Institute of Cost and Management Accountants of Pakistan (ICMAP) has submitted a comprehensive set of tax proposals to the Tax Policy Office (TPO), Ministry of Finance, aimed at enhancing revenue generation and formalizing the economy for the upcoming Federal Budget 2026–27.
Developed by ICMAP’s Research and Publications Department, these proposals are designed to expand the tax base, encourage compliance, and support sustainable and equitable revenue streams. The proposals are divided into seven key segments, including new revenue initiatives, climate and green taxation, urban and transport revenue measures, corporate and financial services taxation, formalization of the digital and informal economy, agriculture and rural income taxes, and wealth and luxury taxation.
Key Revenue Initiatives include the introduction of a Digital Services Tax to capture revenues from streaming platforms, mobile applications, and gaming. ICMAP also recommends a regulated licensing framework for online gaming, a levy on corporate advertising for firms with turnover above PKR 100 million, and an Additional Residential Property Tax (ARPS) targeting second homes valued above PKR 20 million. Other proposals include Building Information Modelling (BIM) for infrastructure projects, green building incentives, and a Commercial Building Safety Levy. ICMAP further recommends a Financial Transaction Tax (FTT) on equities and derivatives, a National Consumer Receipt Lottery to encourage retail compliance, and a Windfall Gains Tax for extraordinary profits in key sectors.
Climate and Green Taxation measures include tax relief for EV charging operators, a Landfill Disposal Tax, a Progressive Carbon and Pollution Levy (PCPL) on large industries, a Green Transport Levy, and a Carbon Market Levy for businesses participating in carbon trading.
Urban and Transport Revenue Measures propose an Annual Vacant Urban Land Tax, a One-Time Betterment Levy on incremental land gains, and a Distance-Based Urban Road Usage Fee to ensure fair contributions from road users, including electric vehicles.
ICMAP emphasizes that these measures are designed to formalize emerging sectors, encourage fiscal compliance, and provide predictable revenue streams, while promoting environmental sustainability and urban development. The institute expects that adoption of these proposals will strengthen Pakistan’s tax base, boost fiscal resources, and align domestic policies with international best practices.
These proposals mark ICMAP’s continued role in shaping progressive and practical tax policies, building on prior contributions that helped formalize digital content creators and high-value pension taxation in FY2025-26.