KARACHI: The Management Association of Pakistan (MAP) has urged the government to introduce comprehensive structural tax reforms in the Federal Budget 2026–27, stressing the need for a stable, transparent, and investment-friendly fiscal framework to strengthen economic growth and restore investor confidence.
According to MAP, Pakistan’s tax system requires urgent rationalization to reduce pressure on compliant taxpayers while expanding the tax base through documentation of the informal economy.
Key proposals by MAP include:
- Gradual reduction in the Super Tax to ease burden on the corporate sector
- Significant tax relief for the salaried class, including an increase in the taxable income threshold up to Rs. 1.2 million
- Reduction in income tax rates across salary slabs
- Restoration of tax credits linked to investment and insurance
- Rationalization of withholding taxes and reassessment of minimum tax provisions
- Expansion of the tax base by integrating undocumented sectors into the formal economy
- Gradual reduction of General Sales Tax (GST) from 18% to 15% to support consumers and businesses
MAP emphasized that sustainable revenue generation cannot be achieved through excessive taxation of existing taxpayers alone. Instead, long-term fiscal stability depends on broadening the tax base, encouraging investment, promoting industrial growth, and improving overall business competitiveness.
The association reiterated that structural reforms are essential to strengthen Pakistan’s economy and create a balanced taxation system that supports both businesses and salaried individuals.
Founded in 1964, the Management Association of Pakistan continues to play a key role in promoting management excellence, corporate governance, leadership development, and policy advocacy in the country.
The complete proposal can be accessed at:
https://mappk.org/wp-content/uploads/2026/06/Press-Release-for-Budget-2026-27.pdf
