Government Plans to Cut Super Tax for Large Companies in Budget 2025-26

Islamabad: The federal government is planning to reduce the super tax for large companies in the upcoming budget 2025-26, according to sources within the Federal Board of Revenue (FBR).

As per the proposed changes, companies with annual profits of Rs 150 million (15 crore) will remain exempt from the super tax. For businesses earning up to Rs 200 million (20 crore), the super tax may be reduced from 1% to 0.5%. Similarly, companies with profits up to Rs 250 million (25 crore) might see their super tax rate lowered from 2% to 1.5%.

However, firms earning up to Rs 300 million (30 crore) are expected to continue paying a 3% super tax, while those earning more than Rs 300 million will likely still be subject to a 4% rate.

FBR sources added that there are no current plans to reduce the corporate income tax rate. Meanwhile, a 5.5% increase in sales tax on 850cc vehicles is being considered.

The upcoming budget may also include a cut in additional regulatory duties on over 3,500 imported items and raw materials. There could be a reduction or removal of withholding tax on imported raw materials used by local industries, including those in the construction sector. Additionally, customs duty on imported goods may be decreased by 2% to 5%.

Read More: Pakistan Set to Present Rs17.6 Trillion Federal Budget for FY2025-26 Tomorrow