Budget 2026-27 speech suggests relief for exporters, but the proposal is yet to be incorporated into the Finance Bill and awaits final approval through the Finance Act 2026.
The question of whether Super Tax has been abolished for exporters in FY 2026-27 remains unresolved, despite a proposal announced during the federal budget speech.
While the government indicated its intention to provide relief to exporters by withdrawing the tax, the proposal has not yet been formally incorporated into the Finance Bill 2026.
During the presentation of the Pakistan Budget 2026-27, Finance Minister Senator Muhammad Aurangzeb highlighted a number of tax reforms aimed at supporting businesses and enhancing economic growth.
Among these measures was a proposal to abolish Super Tax for exporters, a long-standing demand of the export-oriented sector.
However, tax experts have pointed out that the proposed relief is absent from the Finance Bill tabled before Parliament.
As a result, exporters are still awaiting legal confirmation regarding the withdrawal of the tax. The proposal may ultimately be included when the Finance Act 2026 is finalized after parliamentary deliberations.
According to an analysis by KPMG, the finance minister specifically referred to the possible withdrawal of Super Tax for exporters during his budget speech.
Nevertheless, the proposal does not appear in the current draft of the Bill, creating uncertainty about its implementation for the upcoming fiscal year.
The issue of Super Tax has been under extensive review in recent years due to strong concerns raised by industries and exporters.
Business groups have consistently argued that the tax increases the cost of doing business and reduces the competitiveness of Pakistani exports in international markets.
Although the complete abolition of Super Tax for exporters has not yet materialized, the Finance Bill proposes significant relief through changes in tax rates and income thresholds.
Under the proposed framework, a 10% Super Tax rate will apply to banking companies, entities covered under Part I of the Fifth Schedule of the Income Tax Ordinance 2001, and fertilizer businesses with annual income exceeding Rs150 million.
For all other taxpayers, the Super Tax rate is proposed at 8% on annual income exceeding Rs500 million. These revisions represent a substantial rationalization of the tax structure compared to previous years.
Until the Finance Act 2026 is enacted, exporters will have to wait for final confirmation on whether the proposed abolition of Super Tax becomes a reality in FY 2026-27.
