ISLAMABAD – Trade bodies representing markets across the country have submitted a unified charter of demands for the upcoming federal budget 2026-27, calling for significant tax cuts and the immediate abolition of the super tax .
In a formal meeting with Prime Minister Shehbaz Sharif on May 3, traders including representatives from the Anjuman-e-Tajiran and the Markets Association of Islamabad presented their budget proposals. The prime minister assured them that their concerns would be examined and addressed in the upcoming budget .
The key demands presented by the traders include:
- Abolition of the super tax immediately
- Reduction in income tax rates across all brackets
- Reduction in the advance-to-income tax ratio from the current 100% to a maximum of 25%
- Uniform sales tax rate of 5% on all goods
- Broadening of the Tajir Doost Scheme (Shopkeeper Registration Scheme) to bring more retailers into the tax net
- Digitization of the Federal Board of Revenue (FBR)
The prime minister acknowledged the traders’ role as major stakeholders in the national economy, emphasizing that the government would prioritize the formalization of the economy and documentation of retailers .
While traders welcomed the government’s proposed reduction of 5% to 7% in income tax for small businesses in the upcoming budget, they stressed that more substantial relief is needed to combat inflation and revive business activity .
The budget proposals come as the government works to meet IMF revenue targets while also addressing domestic economic pressures . Finance Minister Muhammad Aurangzeb is expected to present the budget in early June 2026 .
