United Business Group (UBG) President Zubair Tufail has urged the government to adopt business-friendly measures in the Federal Budget 2026-27.
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In his budget recommendations, he said Pakistan needs policies that strengthen economic confidence, attract investment and boost industrial activity.
According to Tufail, reducing the General Sales Tax (GST) from 18 percent to 15 percent would help stimulate economic growth.
Higher Growth Target Proposed
Tufail also recommended increasing Pakistan’s GDP growth target to 8.5 percent.
He said ambitious economic goals are necessary to accelerate investment and production.
In addition, he called for reducing the maximum income tax rate for salaried individuals from 35 percent to 20 percent.
According to him, tax relief would increase disposable income and support economic activity.
Support for FPCCI Shadow Budget
The UBG president endorsed the Shadow Budget prepared by UBG Patron-in-Chief S. M. Tanveer and FPCCI President Atif Ikram Sheikh.
The proposal aims to increase Pakistan’s exports from $30 billion to $80 billion.
Furthermore, it seeks to expand the tax base from three million taxpayers to 100 million people.
The plan also targets raising per capita income from $1,900 to $2,900.
Tufail expressed full support for these recommendations.
New Tax Scheme for Retail Sector
The business leader suggested introducing a fixed tax scheme for retailers.
However, he stressed that the policy should be developed in consultation with traders.
He also called for competitive energy prices for industries.
According to him, affordable electricity and gas are essential for industrial expansion.
Export Sector Needs Immediate Relief
Tufail urged the government to restore the Final Tax Regime (FTR) for exporters.
In addition, he called for reinstating the Export Facilitation Scheme in its original form.
He said export financing facilities should become cheaper, easier and more effective.
As a result, exporters would be better positioned to compete in international markets.
Customs and Tax Reforms Recommended
The recommendations also include rationalising customs duties to support industrial development.
Furthermore, Tufail called for policies that create a fair and uniform business environment nationwide.
He proposed introducing a National Industrial Policy alongside a digital tax filing system.
He also recommended implementing a faceless customs clearance mechanism to improve efficiency.
Relief for Salaried Class and Action Against Non-Filers
The UBG president urged the government to provide additional relief to salaried taxpayers.
He also suggested increasing the taxable income threshold.
At the same time, he called for strict action against non-filers.
In addition, he proposed digital applications to simplify tax filing procedures.
According to Tufail, reducing the discretionary powers of tax officials would improve transparency and trust.
Incentives for Key Economic Sectors
Tufail recommended special incentives for the textile, information technology and agriculture sectors.
He said these industries have significant potential to increase exports and create jobs.
Furthermore, he proposed a dedicated support package for small, medium and cottage industries.
Opposition to New Taxes and Super Tax
The business community leader urged the government to avoid imposing around Rs500 billion in new taxes.
He warned that excessive taxation could hurt economic activity and discourage investment.
In addition, he called for reducing levies on petroleum products and captive power plants.
According to him, lower energy costs would help Pakistani exporters compete with regional rivals.
Tufail also argued that the Super Tax has become a major obstacle to industrial growth.
Therefore, he urged the government to abolish it in the upcoming budget.
Call for Comprehensive Tax Reform
In conclusion, Tufail said Pakistan must restructure its tax regime to achieve revenue targets and expand exports.
He argued that a simple, transparent and investment-friendly tax system would encourage new industries, create jobs and increase government revenues without imposing additional tax burdens on businesses and consumers.
