FBR Cuts Exporters’ Tax Rate From 2% to 1.25%
- FBR says the tax rate for exporters has been reduced from 2% to 1.25%.
- Prime Minister has provided exporters with tax relief worth Rs80 billion.
- FBR officials say current tax rates are unlikely to trigger an investment outflow.
- Authorities aim to gradually reduce taxes further in the coming years.
The Federal Board of Revenue (FBR) has informed a Senate panel that the tax rate applicable to exporters has been reduced from 2% to 1.25% as part of measures aimed at providing relief to the export sector.
According to FBR officials, the Prime Minister has extended tax relief worth approximately Rs80 billion to exporters. The reduction is intended to ease the tax burden on businesses and support export-oriented economic activity.
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The matter was discussed during a meeting of the Senate Standing Committee on Finance’s subcommittee, chaired by Pakistan Peoples Party Senator Talha Mahmood.
During the meeting, FBR officials also briefed lawmakers on concerns that heavy taxation could prompt multinational companies and other investors to reduce their presence or withdraw investment from Pakistan.
Responding to these concerns, the FBR maintained that existing tax rates were not expected to result in an investment outflow. Officials also indicated that efforts would be made to bring down taxes further in the coming years.
The discussion comes amid continued debate over Pakistan’s taxation framework and its impact on exporters, multinational companies and the broader investment environment.
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