Government Cuts Super Tax to 8% in Major Corporate Tax Reform Initiative
Minister of State for Finance Bilal Azhar Kayani announced a super tax cut from 10% to 8% for companies earning over Rs150 million annually. This reform aims to ease business burdens, expand the tax base, and boost transparency through FBR digitalization and automated customs clearance.
BUSINESS NEWS
Aagahi Hub
9/6/20261 min read
In a key economic development aimed at easing financial burdens on local businesses, Minister of State for Finance Bilal Azhar Kayani announced that the Pakistani government has reduced the super tax rate from 10% down to 8% for high-earning companies.
Speaking during an official event at the Lahore Chamber of Commerce and Industry (LCCI), the minister confirmed that this 2 percentage point tax reduction applies directly to businesses generating over Rs150 million annually. He emphasized that the policy change forms an integral part of broader structural reforms designed to foster a business-friendly environment and support growth-driving industries.
Key Highlights of the Government Tax Relief Package
The finance minister outlined several core adjustments aimed at streamlining business operations and lowering corporate costs:
Direct Tax Cut: The super tax rate for businesses earning above Rs150 million has been reduced to 8%.
Relief for High Earners: The tax reduction covers multiple earning categories, relieving financial pressure on corporate enterprises and key economic sectors.
Fair Burden Distribution: The initiative aims to lessen the disproportionate financial load placed on compliant, tax-paying businesses.
Overhauling FBR and Digitalizing Revenue Collection
Beyond rate adjustments, Kayani stressed that the government is aggressively restructuring the Federal Board of Revenue (FBR) to eliminate unnecessary administrative hurdles. Key structural shifts currently underway include:
Faceless Customs Operations: Deploying automated and digital clearance tools to minimize human contact and curb informal practices.
Expanding the Tax Net: Broadening the overall tax base rather than repeatedly taxing existing compliant filers.
Automated Tracking Systems: Implementing full-scale track-and-trace protocols to enforce strict transparency across manufacturing sectors.
The government expressed confidence that these technology-backed measures will drastically reduce opportunities for tax evasion while establishing a predictable, equitable tax environment for local and international investors.
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