Budget 2025-26: Large companies set to get 'relief' in super tax
Business
The large companies earning up to Rs250 million annually, will have to pay lesser super tax
ISLAMABAD (Dunya News) – The large business concerns will heave a sigh of relief as the federal government is preparing to cut the rate of super tax in the upcoming budget 2025-26.
The FBR (Federal Board of Revenue) sources told Dunya News on Monday that companies earning an annual profit of Rs150 million will remain exempt from super tax. The companies earning up to Rs200 million annually, the super tax may be reduced from 1% to 0.5%. Similarly, the earnings up to Rs250 million, will have to pay 1.5% super tax instead of present rate of 2%.
The sources indicated that there would be no change in the rate of super tax for companies earning more than Rs250 million. The rate of annual profits up to Rs300 million will remain 3%, while those earning more than Rs300 million annually it would be 4%.
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They mentioned that there was no plan to reduce the overall income tax rate for the corporate sector. However, in the upcoming budget:
- A 5.5% increase in sales tax is expected on 850cc vehicles.
- Additional regulatory duty may be reduced on more than 3,500 imported items and raw materials.
- Withholding tax on imported raw materials for local industries may be reduced or possibly eliminated.
- Additional customs duty on imported goods may be cut by 2% to 5%.
- The construction sector may also benefit from a relaxation in withholding tax on raw materials.
