OICCI welcomes budget 2026-27, calls it step toward stability, business facilitation

ISLAMABAD, Jun 12 (APP): The Overseas Investors Chamber of Commerce and Industry (OICCI) Friday welcomed the Federal Budget 2026-27, stating that it reflects fiscal restraint, structural intent, and progress in several key areas despite challenging macroeconomic conditions.

In a statement, the chamber said the budget demonstrates continued movement toward economic stabilisation and policy direction that supports medium-term growth and investment confidence.

OICCI appreciated the Federal Board of Revenue’s reported tax collection of Rs13 trillion, terming it a notable milestone for the country’s revenue framework and fiscal consolidation efforts.

The chamber particularly welcomed the rationalisation of the super tax, including its abolition for income slabs between Rs150 million and Rs500 million, and the reduction from 10 per cent to 8 per cent for higher income brackets. It said these measures would ease pressure on formal businesses and improve competitiveness.

It also commended the reduction in withholding and advance tax on export proceeds from 2 per cent to 1.25 per cent, noting that the step would support exporters by improving cash flow and liquidity.

OICCI further appreciated the rationalisation of advance tax rates in the real estate sector under Sections 236C and 236K, reduced to 2.75 per cent and 1.5 per cent respectively, stating that such adjustments are likely to help stimulate activity in the sector.

The chamber also acknowledged targeted relief measures for the IT sector and other input categories, describing them as positive steps toward supporting high-growth and export-oriented industries.

It highlighted the proposed establishment of a National Faceless Assessment Centre and a system-based tax assessment framework as a significant structural reform.

OICCI said the initiative reflects an important shift toward digitisation, transparency, and reduced human discretion in tax administration, which is expected to improve ease of doing business.

The chamber expressed optimism that continued reforms in taxation and administration would further strengthen investor confidence and support Pakistan’s broader goals of economic growth, export expansion, and investment attraction.