PM Shehbaz Orders Tax Relief for Manufacturing, Construction Sectors in FY26 Budget
In preparation for the upcoming budget, Prime Minister Shehbaz Sharif has directed the formulation of significant relief measures for the manufacturing and construction sectors, sources told ProPakistani.
These directives from the Prime Minister follow consultations and consideration of proposals put forth by industrialists. Sources indicate that preparations are underway to provide relief to the manufacturing sector, specifically concerning raw materials.
A key measure under consideration for the budget is the potential elimination of withholding tax on raw materials. Sources suggest that this move aims to reduce the cost of raw materials for industries. Furthermore, it is anticipated that the removal of withholding tax on raw materials will also lead to a decrease in the volume of tax refunds.
Additionally, sources reveal a proposal to abolish withholding tax on property transactions in the upcoming budget. This aligns with the potential removal of federal excise duty on the buying and selling of property, as previously reported.
To facilitate these significant tax relief measures, sources indicate that a special session will be held with the International Monetary Fund (IMF) to discuss the elimination of withholding taxes. Efforts will be made to gain the IMF’s agreement on these relief measures, in line with Prime Minister Shehbaz Sharif’s directives.