0%
super tax for most persons up to PKR 500M
Enacted · Finance Act 2026
Business & super tax — Budget 2025–26 vs 2026–27
Verified changes for companies, AOPs, high-income persons and specified distributors in Pakistan.
Enacted 26 June 2026 · Effective 1 July 2026
Enacted 26 June 2026Effective 1 July 2026
- Reviewed against Finance Act 2026
At a glance
Business and super-tax budget changes overview
8%
super tax above PKR 500M
10%
banks, E&P and fertilizer above PKR 150M
29%
standard company income-tax rate
What changed for business taxpayers?
| Measure | FY 2025–26 | FY 2026–27 | Impact |
|---|---|---|---|
| 1. Standard company income tax | 29% | 29% | No change |
| 2. Qualifying small-company rate | 20% | 20% | No change |
| 3. Non-salaried individual / AOP top rate | 45% | 45% | No change |
| 4. Super tax — most persons up to PKR 500M | 1%–7.5% across income bands above PKR 150M | 0% | Abolished |
| 5. Super tax — most persons above PKR 500M | 10% | 8% | Lower |
| 6. Banks, E&P and fertilizer — above PKR 150M | 10% super tax | 10% super tax | No concession |
| 7. Minimum tax for specified distributors | 0.25% of turnover | 0.5% of turnover | Higher |
1. Standard company income tax
No change- FY 2025–26
- 29%
- FY 2026–27
- 29%
2. Qualifying small-company rate
No change- FY 2025–26
- 20%
- FY 2026–27
- 20%
3. Non-salaried individual / AOP top rate
No change- FY 2025–26
- 45%
- FY 2026–27
- 45%
4. Super tax — most persons up to PKR 500M
Abolished- FY 2025–26
- 1%–7.5% across income bands above PKR 150M
- FY 2026–27
- 0%
5. Super tax — most persons above PKR 500M
Lower- FY 2025–26
- 10%
- FY 2026–27
- 8%
6. Banks, E&P and fertilizer — above PKR 150M
No concession- FY 2025–26
- 10% super tax
- FY 2026–27
- 10% super tax
7. Minimum tax for specified distributors
Higher- FY 2025–26
- 0.25% of turnover
- FY 2026–27
- 0.5% of turnover
The 0.5% reduced minimum-tax rate applies to distributors, dealers, sub-dealers and wholesalers of specified goods, subject to both income-tax and sales-tax ATL conditions.
Example: regular company with PKR 450M Section 4C income
FY 2025–26
PKR 33.75M
super tax
FY 2026–27
PKR 0
super tax
Difference
PKR 33.75M
Normal corporate income tax remains separate.
Explore budget impact by sector
Compare the enacted FY 2026–27 changes across taxpayers and industries.
Freelancers & IT
- 0.25% PSEB rate extended to Tax Year 2029
- Export collection: 1.25%
- Foreign-card WHT: 0.5%
Business & super tax
- 0% for most persons up to PKR 500M
- 8% above PKR 500M
- Banks, E&P and fertiliser remain at 10%
Property
- Section 7E repealed
- Sale WHT: 2.75%
- Purchase WHT: 1.25%
Vehicles
- Imported EV FED: 0% / 30% / 40% by USD value
- Imported 2000cc+ vehicles: new special duty
- ICT ≤1000cc: PKR 20,000 lifetime
Solar
- 10% sales tax continues
- No new Finance Act 2026 increase
Defence
- PKR 3.00T defence services
- PKR 822B military pensions, separate
- PKR 925.8B physical assets
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Frequently asked questions
Who pays no super tax in FY 2026–27?
Most persons with Section 4C income up to PKR 500 million now pay 0% super tax. In FY 2025–26 these taxpayers faced 1% to 7.5% across income bands above PKR 150 million.
What is the super-tax rate above PKR 500 million?
Super tax above PKR 500 million falls from 10% to 8% for most persons. The threshold change and the rate cut apply together, so the relief is largest just under PKR 500 million.
Do banks and oil companies get the same relief?
No. Banks, exploration and production companies and fertilizer companies continue to pay 10% super tax above PKR 150 million. They are excluded from the PKR 500 million concession.
Did company income tax rates change?
No. The standard company rate stays at 29%, the qualifying small-company rate stays at 20%, and the top non-salaried individual and AOP rate stays at 45%.
How much does a company with PKR 450M Section 4C income save?
A regular company with PKR 450 million of Section 4C income owed PKR 33.75 million of super tax in FY 2025–26 and owes PKR 0 in FY 2026–27, a difference of PKR 33.75 million. Normal corporate income tax remains separate.
Is there a 1% fixed tax for small retailers?
No. Finance Act 2026 broadens Section 99B so FBR can prescribe special procedures for small traders and shopkeepers, but the Act itself does not enact a universal 1% retailer tax.
What changed for distributors and wholesalers?
Minimum tax for specified distributors rises from 0.25% to 0.5% of turnover. The reduced rate applies to distributors, dealers, sub-dealers and wholesalers of specified goods, subject to both income-tax and sales-tax ATL conditions.
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