ACCA Pakistan has officially released its comprehensive Budget Proposal for the fiscal year 2025–26, offering a strategic and reform-driven roadmap designed to modernize Pakistan’s tax system and stimulate sustainable economic growth. This detailed proposal, developed through a decade-long engagement with the country’s fiscal processes, integrates valuable feedback from ACCA’s Members’ Network Panel (MNP) and draws upon global insights from ACCA’s Professional Insights reports.
The proposal is fundamentally rooted in ACCA’s internationally recognized 12 Tenets of Taxation – principles such as simplicity, certainty, efficiency, and fairness. Its overarching aim is to foster a more transparent, predictable, and inclusive tax regime for Pakistan.
Key Highlights: Simplification, Roadmap, and Transparency
Among the key highlights of ACCA’s recommendations is the significant call for the formation of an independent Tax Law Simplification Commission. This commission would be tasked with streamlining Pakistan’s often complex tax codes. The proposal also advocates for the introduction of a clear 3–5 year Tax Policy Roadmap, designed to provide much-needed certainty and predictability for businesses and investors. Furthermore, ACCA suggests the establishment of a dedicated Taxpayer Engagement & Transparency Portal, explicitly modelled after successful global best practices to enhance interaction and trust between taxpayers and authorities.
Harmonized Rates, Digital Enablement, and Dispute Resolution
Other major recommendations put forward by ACCA include advocating for harmonized tax rates for both salaried and non-salaried individuals, aiming for greater equity. The proposal also suggests a 35% marginal tax rate for high-income earners. To encourage specific economic activities, targeted incentives are proposed for IT and AI research and development (R&D), green investments, and documented trade. To promote broader digital enablement across the economy, the proposal calls for mandatory e-filing and Point-of-Sale (POS) integration, drawing inspiration from successful models implemented in countries like Estonia and India.
A significant reform in the area of tax dispute resolution is also suggested, specifically through the reinstatement of judicial neutrality by ensuring that tribunal members are appointed through the Federal Public Service Commission (FPSC). Additionally, the proposal advocates for the establishment of an Independent Tax Oversight Body, referencing successful oversight models observed in countries such as the US and Australia.
Priorities and Collaborative Approach
The top priorities identified within ACCA’s comprehensive proposal include tax law simplification, ensuring policy certainty, and undertaking fundamental real estate valuation reform. The document effectively positions ACCA not only as a technical advisor but also as a committed partner in national development. It expresses ACCA’s readiness to collaborate closely with both government entities and civil society organizations to achieve fiscal sustainability and foster robust investment growth in Pakistan.
The proposal, which is grounded in both international best practices and a deep understanding of local realities, will be shared with key stakeholders across the country and is available upon request.
