ISLAMABAD: The Tax Policy Office (TPO) of the Ministry of Finance has formally invited the business community to submit their taxation-related proposals for the federal budget 2026-27, as the government begins early preparations for the next fiscal year.
In a communication issued on Monday, Director General Tax Policy Office Dr Najeeb A. Memon requested chambers of commerce, industry associations, and trade bodies to share their input. The proposals will be used to help shape a strategy paper on taxation for the upcoming budget.
Dr Memon highlighted a major institutional change in the budget-making process, noting that tax policy formulation has now been separated from the Federal Board of Revenue (FBR) and assigned to the Tax Policy Office under the Ministry of Finance. He said this step aims to ensure greater policy consistency and a more structured approach to taxation.
According to the TPO, the taxation framework for 2026-27 will be guided by long-term economic value rather than short-term revenue pressures. The budget process will involve close consultation with stakeholders to ensure that tax measures do not place an unnecessary or disproportionate burden on productive sectors of the economy.
The office noted that, given the current economic challenges, taxation, energy tariffs, and high financing costs require careful review to support sustainable economic growth. As the budget is a key part of the government’s long-term financial planning, it must also align with national development goals outlined in official policy frameworks.
The priorities highlighted by the government include export-led growth through improved competitiveness, foreign investment, and smoother trade procedures; expansion of the manufacturing base, including mining, with an emphasis on local inputs, technology, and value addition; and promotion of digital transformation through wider use of ICT, cashless transactions, and growth in IT exports.
Other focus areas include environmental sustainability and climate resilience, development of affordable and efficient energy infrastructure, and promotion of social equity. This includes increasing women’s participation in the workforce, reducing youth unemployment, and strengthening ethical and inclusive economic practices.
The business community has been encouraged to submit tax proposals that ease the burden on productive sectors while supporting industrial growth, export expansion, digitalization, energy efficiency, and social justice. Businesses have also been asked to identify complexities, inequities, and inefficiencies in existing tax laws, whether sector-specific or economy-wide, to help build a more effective and fair tax system.
The Tax Policy Office said all submissions will be carefully reviewed and, where suitable, incorporated into the financial plan for FY2026-27. Stakeholders have been requested to submit their proposals by January 30, 2026.
