ISLAMABAD: The federal government has approved the complete abolition of Super Tax for companies whose export receipts account for more than 80 percent of their total turnover, delivering significant tax relief to Pakistan’s export-oriented industries under the Finance Bill 2026.
The measure, approved by Parliament as part of the federal budget for FY2026-27, goes beyond the government’s original proposal, which had suggested reducing the maximum Super Tax rate from 10 percent to 8 percent. Instead, lawmakers granted a full exemption to companies meeting the prescribed export threshold.
The decision is expected to provide substantial financial relief to Pakistan’s leading exporters, particularly those operating in the textile sector, which remains the country’s largest export industry.
Major textile exporters including Interloop Limited, Gul Ahmed Textile Mills, and Feroze1888 Mills are among the companies likely to benefit from the exemption. According to market estimates, exports account for approximately 94 percent of Interloop’s revenue, 91 percent of Gul Ahmed Textile Mills’ turnover, and nearly 96 percent of Feroze1888 Mills’ total revenue.
Industry analysts believe the removal of Super Tax will improve profitability, strengthen cash flows, and enhance the global competitiveness of Pakistani exporters at a time when businesses continue to face challenges such as high energy costs, elevated financing rates, and delays in tax refund payments.
According to JS Global, the tax exemption could increase Interloop Limited’s earnings per share (EPS) for FY27 by around 17 percent to Rs. 15.64. The brokerage also estimates that the company’s target share price could rise by approximately 27 percent to Rs. 137, while maintaining its “Buy” recommendation on the stock.
Super Tax was originally introduced in 2015 as a temporary measure to fund rehabilitation efforts following military operations against terrorism. However, the levy gradually became a recurring tax burden on large corporations, drawing criticism from exporters and business groups who argued that it reduced investment incentives and undermined Pakistan’s export competitiveness.
Business leaders have welcomed the government’s decision, describing it as a positive step toward supporting export growth, attracting investment, and strengthening the country’s foreign exchange earnings.
