The Federal Board of Revenue (FBR) is considering additional tax relief for businesses, including a possible reduction in super tax and sales tax, as companies continue to face rising operating costs, high electricity prices and expensive financing.

The matter was discussed during a meeting of the Sub-Committee of the Senate Standing Committee on Finance, where business representatives urged the government to take steps to reduce the cost of doing business and encourage investment and industrial activity.

FBR Member Hamid Ateeq Sarwar said the government was reviewing further tax relief measures, with super tax among the areas under consideration. He added that steps were also being examined to reduce the sales tax burden on businesses.

According to the FBR official, around PKR 361 billion in tax relief has already been provided under the Prime Minister’s directions. Recent measures have included tax reductions for salaried individuals, a reduction in super tax and the removal of super tax for exporters.

Business representatives, however, highlighted the continued pressure from high taxation, electricity costs, interest rates and regulatory requirements. They also raised concerns about frequent notices, audits and enforcement actions by FBR field formations.

Mian Zahid Hussain of the FPCCI Policy Advisory Board called for reductions in advance and withholding taxes, rationalization of customs duties and simpler audit procedures. He said tax policy should support economic growth alongside revenue collection.

FPCCI Vice President Tariq Khan Jadoon also pointed to high electricity tariffs and regulatory challenges, saying that these factors continue to affect businesses despite Pakistan’s relatively competitive labor costs. He supported broadening the tax base by bringing more businesses and sectors into the formal tax system instead of increasing the burden on existing taxpayers.

The Senate committee stressed the need for a transparent and business-friendly tax system, noting that excessive taxation could discourage investment and weaken the formal economy.

FBR officials also briefed the committee on taxpayer facilitation initiatives, including a proposed mobile application for tax reimbursements and dedicated facilitation days in major commercial centers.