KARACHI: ACCA Pakistan has released its Budget Proposal for FY 2025–26, offering a strategic, reform-driven roadmap to modernize Pakistan’s tax system and stimulate sustainable economic growth. Developed through a decade-long engagement with the country’s fiscal processes, the proposal integrates feedback from ACCA’s Members’ Network Panel (MNP) and global insights from ACCA’s Professional Insights reports.
The proposal is rooted in ACCA’s 12 Tenets of Taxation - simplicity, certainty, efficiency, and fairness - and aims to foster a more transparent, predictable, and inclusive tax regime. Key highlights include the formation of an independent Tax Law Simplification Commission, the introduction of 3–5 years Tax Policy Roadmap and the establishment of a Taxpayer Engagement & Transparency Portal modelled after global best practices.
Other major recommendations include harmonized tax rates for salaried and non-salaried individuals, a 35% marginal tax rate for high-income earners, and targeted incentives for IT and AI R&D, green investments, and documented trade. To promote digital enablement, the proposal calls for mandatory e-filing and POS integration, inspired by models in Estonia and India.
A significant reform in tax dispute resolution is also suggested through reinstating judicial neutrality via FPSC-appointed tribunal members. Additionally, the proposal advocates for an Independent Tax Oversight Body, referencing successful oversight models from the US and Australia.
Top priorities identified in the proposal are tax law simplification, policy certainty, and real estate valuation reform. The document positions ACCA not only as a technical advisor but also as a partner in national development, expressing readiness to collaborate with government and civil society for fiscal sustainability and investment growth.
The proposal, grounded in international best practices and local realities, will be shared with key stakeholders and is available on request.
Copyright Business Recorder, 2025
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