NA panel concerned at fixed tax scheme for traders
The National Assembly Standing Committee on Finance expressed serious concerns over the proposed fixed tax scheme for traders in the FY2026-27 budget, fearing it would distort the tax system and hinder economic growth.
- Proposed fixed tax scheme for traders and retailers.
- Budget's focus on revenue generation and fiscal consolidation.
- Implications of the IMF Programme on fiscal policy.
ISLAMABAD: National Assembly Standing Committee on Finance Saturday expressed serious concern over the proposed fixed tax scheme for traders, shopkeepers and retailers under the Finance Bill 2026, which it said would create distortions in the tax system.
A meeting of the Standing Committee on Finance and Revenue was held Saturday at the Parliament House under the Chairmanship of Syed Naveed Qamar, MNA. A team of financial experts presented the “Post-Budget Analysis of the Federal Budget FY 2026–27” before the Committee. The experts briefed the Committee on macroeconomic assumptions, revenue measures, expenditure priorities, development allocations, tax reforms, and the overall fiscal outlook.
The Committee reviewed tax policy measures announced in the budget, including relief for salaried taxpayers, reductions in selected customs duties, incentives for exporters, and reforms relating to the property sector. Particular concern was expressed over the newly proposed retailer tax scheme.
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The Committee observed that the scheme could create distortions within the tax system, discourage compliance under the normal tax regime, and potentially erode the existing tax base.
Syed Naveed Qamar observed that the Federal Budget FY2026-27 remains heavily focused on revenue generation and fiscal consolidation, while offering limited measures to stimulate economic growth, investment, and employment.
He expressed concern over the continued practice of setting ambitious revenue targets despite repeated shortfalls in tax collection. He questioned the rationale behind imposing additional taxation on citizens while simultaneously maintaining large primary surpluses and compressing development expenditure under International Monetary Fund (IMF) Programme requirements.
During the briefing, the Committee was informed that the budget has been formulated within the framework of Pakistan’s ongoing IMF Programme, with fiscal consolidation and achievement of primary surplus targets serving as the principal policy objectives. The government has projected GDP growth of 4 percent and inflation of 8.2 percent for FY2026–27, while total federal expenditure is estimated at approximately Rs18.7 trillion.
The Committee discussed the requirement for substantial provincial fiscal surpluses under the IMF Programme and questioned the policy rationale of collecting additional revenues from taxpayers while restricting public expenditure and development spending.
Copyright Business Recorder, 2026
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