Islamabad: The Pakistan Business Forum (PBF) has proposed the introduction of a fixed monthly tax on retailers and the abolition of the super tax as part of its recommendations for the Federal Budget 2026–27 submitted to the Ministry of Finance.
In its budget proposals, the forum suggested imposing a fixed monthly tax of Rs10,000 on shopkeepers and traders to broaden the tax base and simplify compliance procedures. According to the PBF, the proposed measure could help the government collect up to Rs480 billion annually.
The forum proposed that the tax be collected through electricity bills and applied without additional documentation requirements. It estimated that nearly four million shops across the country could fall under the scheme.
PBF President Khawaja Mehboob ur Rehman said the business community was facing growing frustration and uncertainty, stressing the need for immediate business-friendly measures to restore investor confidence and support economic activity.
The forum also strongly recommended the complete abolition of the super tax, stating that the levy was initially introduced as a temporary measure but had effectively become permanent.
According to the PBF, Pakistan’s cost of doing business is currently around 34% higher than that of regional competitors, making targeted reforms necessary to improve competitiveness and attract investment.
The forum urged the government to prioritise policies in the upcoming budget that support economic growth, industrial expansion, and sustainable revenue generation while reducing operational costs for businesses.
Among other recommendations, the PBF proposed a gradual reduction in corporate tax rates and called for the repeal of Sections 37AA, 37B, 14AC and 14AD of the Finance Bill to facilitate business activity.
The forum also recommended rationalising taxes and surcharges on electricity bills across domestic, industrial and commercial sectors, alongside improving access to credit for small and medium enterprises (SMEs) and startups.
To support the textile and agriculture sectors, the PBF proposed abolishing sales tax on local cotton seeds, noting that domestic cotton production has declined sharply over the past four decades.
Under the Green Pakistan Initiative, the forum suggested a seven-year tax holiday for corporate farming to encourage large-scale agricultural investment.
For the construction sector, the PBF recommended abolishing Section 7E and introducing amendments to Sections 8 and 8B to revive investment activity.
Additional proposals included restricting non-filers from owning more than three vehicles, introducing measures to curb under-invoicing, and improving transparency in housing societies by requiring them to adopt public limited company structures with seven directors.
According to the forum, these measures would help improve corporate governance, strengthen tax collection, and support long-term economic growth.
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