RAWALPINDI — The business community in Rawalpindi has expressed strong support for the 2026-27 federal budget, endorsing key measures. However, business leaders call for clearer economic policies to help reduce business costs.
Key Budget Highlights and Reactions
Usman Shaukat, President of the Rawalpindi Chamber of Commerce and Industry (RCCI), praised a 7% increase in salaries and pensions. He welcomed the removal of the Federal Excise Duty on medicines for cancer and other serious illnesses. Despite these positives, Shaukat pointed out the lack of a clear export policy and initiatives to promote a more business-friendly environment.
He emphasized the importance of ongoing consultations with the business community to develop a beneficial policy framework.
Real Estate Tax Reductions
Sohail Altaf, Group Leader and Former President of RCCI, appreciated the reduction in property purchase taxes. Rates for filers have decreased from 2.5% to 1.25%, and from 5.5% to 2.75% for sellers. He also praised the exemption from super tax for businesses earning up to Rs. 0.5 billion and a tax rate reduction from 10% to 8% for higher incomes.
Call for Policy Clarity
Altaf highlighted current ambiguities in GST policies and urged lawmakers to lower operational costs for businesses. He commended Prime Minister Shehbaz Sharif for incorporating business chamber input into budget discussions.
With prevailing tax rates between 50% to 60% creating barriers to investment, adjustments are necessary. The business community advocates expanding the government’s tax net with a clear and practical strategy, especially to support small traders.
