Govt initiates FY 2026-27 budget prep; Ministry of finance to lead tax policy

ISLAMABAD: The federal government has commenced preparations for the Fiscal Year 2026-2027 budget, seeking suggestions from the business sector by January 30, ARY News reported.

In a significant shift, the Ministry of Finance—rather than the Federal Board of Revenue (FBR)—will take the lead in drafting tax policy.

To this end, the Ministry’s Tax Policy Office has been assigned full responsibility for tax reforms.

The government’s budget priorities include extensive consultations with all stakeholders. Key deliberations are underway to reduce the tax burden on industries, alongside a declared focus on encouraging foreign investment and boosting exports.

The upcoming budget also aims to promote manufacturing and industrial growth, with the government considering tax facilitation to bolster the IT sector and the digital economy.

Furthermore, priority has been given to eco-friendly and affordable energy projects.

To address unemployment, the government intends to concentrate on creating job opportunities for women and youth.

Additionally, it has pledged to eliminate complexities and inequities within the tax system in response to ongoing concerns from the business community.

All business sectors have been instructed to submit their tax proposals via email or post.

The finance ministry has also issued a special form for the budget suggestions. Under this new protocol, any suggested amendments must include a detailed rationale and background.

Submissions must also quantify the projected impact on revenue, economic indicators, and the specific sector involved.

Only concrete and data-backed suggestions will be prioritized for the final budget.