Karachi: The United Business Group (UBG) has urged the government to adopt its recommendations for the Federal Budget 2026-27, emphasizing tax reductions and economic reforms to boost investment and economic growth. Zubair Tufail, UBG President, proposed reducing the General Sales Tax rate from 18% to 15% and lowering the maximum income tax rate for the salaried class from 35% to 20%.

According to United Business Group, the proposals include raising Pakistan's GDP growth target to 8.5% and expanding exports from $30 billion to $80 billion. The group, supported by UBG Patron-in-Chief S. M. Tanveer and FPCCI President Atif Ikram Sheikh, also suggests increasing the tax base and per capita income. The Shadow Budget they presented highlights the need for a fixed tax scheme for the retail sector, competitive energy rates for industries, and a simple tax system to encourage investment.

Zubair Tufail called for the restoration of the Final Tax Regime for exporters and the original form of the Export Facilitation Scheme. He advocated for rationalizing customs duties, implementing a National Industrial Policy, and providing relief to the salaried class. Other suggestions include launching digital tax applications, reducing tax officials' discretionary powers, and offering incentives for key sectors like textiles, IT, and agriculture.

The group also recommends reducing levies on petroleum products and captive power plants, proposing a special package for small and medium enterprises, and avoiding imposing new taxes. Tufail emphasized that the Super Tax obstructs industrial growth and should be removed. He concluded that a comprehensive restructuring of Pakistan's tax regime is essential for achieving Federal Board of Revenue targets and enhancing exports.