super tax

Finance Minister Muhammad Aurangzeb outlined key measures in the FY26-27 budget, including abolishing the super tax for businesses and exporters, introducing a Rs70 billion subsidy for refinancing schemes, and reducing tax slabs for the salaried class. The budget also proposes taxes on social media earnings, incentives for electric vehicles, and efforts to boost export-led growth, particularly in IT and construction sectors.

The 2026-27 budget aligns with IMF fiscal targets, freezes provincial transfers for three years, and introduces new taxes on social media earnings and traders while offering relief to salaried individuals, exporters, and real estate sectors. It includes a 7% salary and pension increase, a higher minimum wage, and tax cuts for certain income brackets and industries.

The government introduced budget measures addressing public concerns by scrapping deemed income on capital assets, abolishing the Super Tax for firms with income up to Rs500 million, and reducing real estate transaction taxes. New revenue strategies include taxing digital content creators, expanding sales tax, and implementing 'faceless' tax administration to enhance compliance.

The government announced FY26-27 budget measures including 7% salary and pension increases, a 10% federal minimum wage hike, expanded social welfare programs, and tax reductions for multiple income brackets. Relief includes lower tax rates for high earners, abolition of certain surcharges, and sector-specific concessions for real estate, IT, and exports.