KARACHI: Business leaders have advised the government to avoid surprises in the upcoming federal budget by proposing significant relief for the salaried class, including a reduction in the general sales tax (GST) and the phasing out of the super tax.

In addition to balancing the external account and managing the fiscal deficit, Pakistan Business Council CEO Ehsan Malik stated that there is now an urgent need to augment defence spending through higher export earnings.

The PBC’s budget proposals aimed to fiscally incentivise the rapid growth of exports and the indigenisation of inputs. Given the constraints on the fiscal account, the council sought a gradual reduction in corporate and super taxes, as well as the withdrawal of multiple taxation on inter-corporate dividends.

Relief was requested for salaried employees, as was a reduction in GST, which at 18pc incentivised evasion. He emphasised that a higher tax-to-GDP ratio should be the result of business growth, not the outcome of further taxes on those already........

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