The federal government has announced a reduction in the minimum tax rate for exporters, cutting it from 2 to 1.25 percent as part of the Finance Bill.
The measure will bring professional income tax and minimum tax for the export sector down to 1.25 percent, replacing the existing 2 percent rate currently in place.
According to the budget speech, the proposed reduction will be formally incorporated into the minimum tax structure as part of the government’s latest fiscal framework.
The government said the decision is intended to lower the cost of doing business for exporters and strengthen their competitiveness in international markets.
The export sector contributes significantly to the country’s foreign exchange earnings and has long been a central focus of government economic planning and policy.
Exporters have consistently raised concerns that high taxation, rising energy costs, and delayed refunds have made Pakistani goods less competitive in global markets.
The government said the tax cut is part of a broader strategy to boost export volumes, generate employment, and increase foreign exchange inflows through formal channels.
