ISLAMABAD — The federal government has announced a significant revision in the super tax structure under Budget 2026–27, reducing rates for higher-income businesses and abolishing multiple mid-tier slabs.
Finance Minister Muhammad Aurangzeb, presenting the budget in National Assembly, said the government has decided to completely eliminate six super tax slabs previously applicable on businesses with annual income between Rs150 million and Rs500 million. These slabs were earlier taxed at rates ranging from 1 percent to 7.5 percent.
He further announced that for companies earning above Rs500 million, the super tax rate has been proposed to be reduced from 10 percent to 8 percent.
According to the finance minister, the measures are aimed at supporting small and medium enterprises, improving industrial competitiveness, and facilitating ease of doing business in the country.
The relief will not extend to all sectors. The existing surcharge will remain unchanged for banks, oil and gas exploration companies, and the fertilizer sector.
The announcement marks one of the key tax adjustments in the new budget, reflecting the government’s broader fiscal strategy focused on business facilitation and investment growth.
Budget 2026-27: Proposed Tax Slabs for Salaried Class in Pakistan
