Key Points
- Government intensifies pre-budget consultations with the business community
- Finance ministry says trader proposals will be considered in Budget 2026-2027
ISLAMABAD: Pakistan is considering an easy tax scheme for small traders and businesses in the upcoming federal budget for fiscal year 2026-2027, considering proposals from trade representatives for a simplified taxation framework during talks with the finance ministry.
A Central Organisation of Traders Pakistan delegation, led by its president Kashif Chaudhry, met State Minister for Finance Bilal Azhar Kiani and presented a set of proposals for the next fiscal year to be presented to the parliament early June.
Pakistan’s financial year starts with July; therefore, the annual budget, along with the draft bill, is supposed to be tabled, debated and passed by the parliament before July 1. The National Assembly and Senate traditionally need at least 21 days to debate the budget proposals and clauses of the finance bill.
The traders’ budget proposals seek to ease tax compliance and improve the regulatory environment for Pakistan’s retail and wholesale sectors.
According to an official statement issued on Saturday, the traders called for the introduction of an “easy tax scheme” in the next budget to help simplify procedures for small businesses and encourage voluntary compliance with tax laws.
The delegation also proposed measures to remove administrative hurdles, streamline business-related procedures and create a more facilitative environment for traders operating within the formal economy.
The finance ministry said the ongoing consultation process with business groups before the budget is intended to promote a collaborative approach to economic policymaking and ensure stakeholder participation in fiscal reforms.
The traders appreciated the consultative process initiated by Prime Minister Shehbaz Sharif. They acknowledged the government’s engagement with the business community on taxation and commercial issues.
Bilal Azhar Kiani reiterated the government’s commitment to creating a business-friendly environment and recognised the role of the trading sector in supporting economic activity and employment generation in Pakistan.
He assured the delegation that their proposals, including the demand for an easy tax scheme, would be considered as part of the budget preparation process. He promised compassionate consideration of the budget proposals under the Prime Minister’s guidance.
