Budget 2026-27 — A Complete Summary for Businesses
The whole picture in one place
The Finance Act 2026 (Federal Budget 2026-27) touches nearly every part of running a business in Pakistan. This summary draws the themes together — income tax, super tax, withholding, sales tax, customs and compliance — so leadership teams can plan from a single reference. All measures take effect from 1 July 2026.
Income and super tax
- Salary tax follows the federal slabs, from 0% up to Rs 600,000 to 35% above Rs 7,000,000.
- Super tax is abolished for income up to Rs 500 million and cut from 10% to 8% above that — though banking, exploration and production, and fertilizer sectors are excluded from the concession.
- Special Purpose Vehicles for asset-backed securitization are exempted, and several charitable bodies no longer need yearly Commissioner approval.
Withholding tax at a glance
| Payment (filer) | Company | Individual/AOP |
|---|---|---|
| Supply of goods | 5% | 5.5% |
| Services (general) | 9% | 11% |
| Contract execution | 7.5% | 8% |
| Dividend (150) | 15% | — |
Per-vendor annual thresholds are Rs 75,000 (goods) and Rs 30,000 (services), and the small-trader withholding-exemption turnover threshold rises from Rs 100M to Rs 200M.
Property and exports
- Property purchase advance tax (236K) is a flat 1.5% for filers; sale (236C) a flat 2.75%.
- Export proceeds tax falls from 2% to 1.25%; the IT export concessional 0.25% rate runs to Tax Year 2029.
- Foreign card payment advance tax drops from 5% to 0.5%; CVT on foreign assets is abolished.
Sales tax and customs
- Goods sales tax is 18% federally; services are provincial (Punjab 16%, Sindh/KP/Balochistan 15%, Islamabad 16%, telecom 19.5%).
- The Third Schedule is expanded; customs and additional/regulatory duties are cut across thousands of tariff lines under the National Tariff Policy 2025-30.
Compliance is tightening
A National Faceless Centre handles audits and assessments, machine-readable financial statements become mandatory, and banking and tax systems cross-match high-value transactions. A 10% credit rewards investment in FBR system integration.
How Zaffre ties it together
No business should track these rates by hand. Zaffre Axon, the Zaffre Tech platform, applies FBR slabs, withholding, sales tax and customs logic across payroll, invoices and finance — configured centrally so every module stays aligned. Zaffre HRM keeps payroll, EOBI and allowances compliant, while the Zaffre Axon finance suite handles withholding and sales tax. Zaffretech and Zaffreaxon clients update once and stay current as Budget 2026-27 rolls out.
References: Finance Act 2026 (Federal Budget 2026-27); Income Tax Ordinance 2001; Sales Tax Act 1990; National Tariff Policy 2025-30; FBR.
Book a demo of Zaffre Axon to bring all of Budget 2026-27 into one compliant platform.