The Pakistan Textile Council (PTC) has called for the government to treat the proposed reduced levy on export proceeds as a “full and final” discharge of income tax liability, arguing that such a move would eliminate further tax obligations for exporters and provide long-term policy certainty.
The Council said this step would remove ambiguity in the current tax regime, prevent additional income tax claims on export earnings, and create a stable framework that supports investment and export growth.
In separate letters to Finance Minister Senator Muhammad Aurangzeb and Minister of State for Finance Bilal Azhar Kayani, PTC Chairman Fawad Anwar welcomed the export-focused measures announced in the Finance Bill 2026–27, describing them as positive steps toward improving competitiveness, investment confidence, and export-led growth.
The Council appreciated the revision of income tax slabs for salaried individuals, saying it would increase disposable income and support domestic demand, particularly within industries linked to exports. It also welcomed the rationalisation of the super tax for companies earning up to Rs500 million, terming it relief for the productive corporate sector that would encourage reinvestment and expansion.
PTC further praised the government’s decision to abolish super tax for exporters, calling it a strong signal to investors and export-oriented businesses. It said the move would reduce the effective tax burden and improve Pakistan’s competitiveness against regional economies.
The textile body also noted the reduction in the levy on export proceeds from 2 percent to 1.25 percent, stating that it would ease cash-flow pressure and improve liquidity across the export sector.
Alongside its main proposal, PTC suggested that if a “full and final” tax regime is not immediately adopted, the government should consider setting a 15 percent corporate tax rate on export income as an alternative. It said this would align Pakistan with regional competitors such as Bangladesh and Sri Lanka and help attract export-led investment.
Fawad Anwar said the Finance Bill reflects the government’s commitment to export-led growth and macroeconomic stability, adding that further refinements would ensure the intended relief is effectively passed on to exporters and supports long-term sector expansion.
