Karachi Chamber says shift to Normal Tax Regime has increased tax burden, compliance costs and operational challenges for exporters.
The Karachi Chamber of Commerce and Industry (KCCI) has urged the government to restore the Final Tax Regime (FTR) for exporters in the Federal Budget 2026-27, arguing that the existing taxation framework is undermining the competitiveness of Pakistan’s export sector.
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Government weighs capital gains, transaction and holdings-based taxation as digital assets move toward formal regulatory framework
ISLAMABAD, June 4, 2026 — Pakistan is preparing to introduce a formal tax and regulatory framework for cryptocurrency transactions as part of the federal budget 2026–27, in what would mark one of the country’s first structured attempts to bring digital assets into the tax net.
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Chartered accountants call for reforms in utility tax collection system, citing misclassification and compliance issues in FY2026-27 proposals
ISLAMABAD, June 4, 2026 — The Institute of Chartered Accountants of Pakistan (ICAP) has urged the government to review the mechanism for collecting additional sales tax through electricity and gas bills, arguing that the current system is creating undue tax burdens for registered and exempt entities.
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Chartered accountants propose 10-year tax stability and incentives for export-oriented foreign investors in FY2026-27 budget
The institute recommended the creation of a separate tax schedule specifically designed for foreign direct investment in export-led manufacturing sectors. Under the proposed framework, qualifying investors would receive a package of tax incentives, legal protections and clearly defined eligibility criteria aimed at encouraging long-term investment commitments.
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Proposed end of EV tax incentives and higher levies on hybrids raise concerns over market slowdown
Pakistan’s push toward cleaner transport could face a setback as the government considers ending tax concessions on electric vehicles in the Budget 2026-27, potentially raising costs for consumers and slowing industry growth, according to sources.
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Proposal to shift stationery items to standard tax rate sparks concern over affordability and inflation pressures
Millions of Pakistani families could face higher education-related expenses as the government considers increasing sales tax on stationery items from the current reduced rate of 10% to 18% in the upcoming Budget 2026-27, according to sources.
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Proposed relief target withholding tax on property transactions for filers as budget details emerge ahead of FY2026-27
The government is considering significant tax relief measures for Pakistan’s real estate sector in the upcoming FY2026-27 budget, aiming to stimulate economic activity, boost construction and generate employment, according to sources familiar with the matter.
(more…)Government resists IMF proposal for GST increase as officials weigh revenue measures ahead of federal budget
Pakistan is unlikely to raise the General Sales Tax (GST) rate in the federal budget for 2026-27 despite a proposal from the International Monetary Fund (IMF), as authorities remain concerned about the inflationary impact of higher indirect taxes amid rising fuel costs, sources said.
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Tax body urges amendment to align sales tax law with FBR’s digital registration procedures
The Karachi Tax Bar Association (KTBA) has highlighted procedural hurdles in the Federal Board of Revenue’s (FBR) online tax system, saying registered taxpayers face difficulties in declaring business bank accounts because the prescribed sales tax registration form is no longer available on the tax authority’s digital platform.
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Chartered accountants call for lower sales tax rates and wider incentives to boost documentation and expand the sales tax net.
The Institute of Chartered Accountants of Pakistan (ICAP) has expressed concern over a decline in active sales tax registrations and urged the government to reduce sales tax rates in the federal budget 2026-27 to encourage greater documentation of the economy and improve tax compliance.
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