LAHORE: The federal government is reportedly preparing a package of tax relief measures for exporters as part of the upcoming Budget 2026-27, according to sources familiar with the matter.
The development follows a recent meeting between Prime Minister Shehbaz Sharif and representatives of the business community, during which the premier assured exporters that the government would provide relief in the next federal budget.
While specific details of the proposed package were not disclosed during the meeting, sources indicated that one of the exporters’ longstanding demands the abolition of the minimum tax regime may be considered as part of the upcoming fiscal measures.
The government is also moving ahead with the second phase of its five-year Tariff Reform Plan (2025–2030), aimed at improving competitiveness, reducing import costs, and supporting export-oriented industries.
Under the proposed reforms, authorities plan to reduce Additional Customs Duty (ACD) on 3,149 tariff lines and lower Regulatory Duties (RD) to 20 percent on more than 1,900 tariff lines in the FY2026-27 budget.
Business leaders have consistently called for lower taxation, faster refund processing, and tariff rationalization to enhance Pakistan’s export performance and attract greater investment in manufacturing sectors.
Sources further revealed that the Federal Board of Revenue has been directed to clear pending tax refunds by June 15 following instructions from the Prime Minister. The move is expected to improve liquidity for exporters and address concerns regarding delayed refund payments.
The expected relief measures are being viewed as part of the government’s broader strategy to support exports, strengthen industrial growth, and improve Pakistan’s external sector performance in the coming fiscal year.
