ACCA Pakistan releases budget proposal 2025–26

May 23, 2025 (MLN): ACCA (the Association of Chartered Certified Accountants) Pakistan has officially released its comprehensive Budget Proposal for the fiscal year 2025–26, presenting a well-rounded, reform-oriented roadmap to strengthen Pakistan’s taxation system and promote sustainable economic growth.

This proposal reflects over a decade of engagement with Pakistan’s fiscal reform process and is informed by extensive consultation with ACCA’s Members’ Network Panel (MNP), comprised of experienced finance professionals from leading firms and industries across the country, as per the press release issued.

This year’s document also includes insights from ACCA’s key Professional Insights (PI) reports, including Tax as a Force for Good, Public Trust in Tax, Technology and Tools of Tax Administration, and Business Confidence Survey, providing a rich global context to the local challenges.

“ACCA’s tax tenets stress simplicity, certainty, efficiency, and fairness”, said Assad Hameed Khan, Head of ACCA Pakistan.

“Our proposals reflect the voice of our members working across diverse sectors in Pakistan and are grounded in both international best practices and local realities”, he added.

“ACCA’s budget proposal recognises the urgent need for systemic reform and a vision for a self-reliant and prosperous economy”, said Aucky Pratama, Executive Director – Asia Pacific, ACCA.

“It sets out a clear, practical pathway for transforming Pakistan’s taxation system into one that not only raises revenue but actively enables economic opportunity and citizen trust”, he noted.

“This proposal is a reflection of the collective insight of our professional community in Pakistan”, Haroon A Jan”, Head of Member Engagement ACCA, added

“We’ve worked hard to ensure that the recommendations are practical, policy-relevant, and guided by ACCA’s global best practices, while staying grounded in the realities of Pakistan’s tax and economic landscape”, he noted.

One of the major reforms proposed is the Simplification of tax laws through the establishment of an independent Tax Law Simplification Commission.

This commission would draw inspiration from international models such as the UK’s Office of Tax Simplification and India’s Direct Tax Code initiative.

To enhance Certainty, the proposal recommends the introduction of a 3–5 year Tax Policy Roadmap.

This roadmap is intended to improve predictability within the tax system, support business planning, and attract investment by providing a stable and forward-looking tax environment.

In the interest of Openness and Transparency, ACCA suggests the development of a Taxpayer Engagement & Transparency Portal.

This portal would be modelled on the public consultation mechanisms used by Canada’s CRA and the UK’s HMRC, allowing for greater public interaction and trust in the taxation process.

The principle of Fairness is addressed through proposals such as harmonising tax rates for salaried and non-salaried individuals, ensuring equitable treatment for sportspersons and professionals, and introducing a 35% marginal tax rate for income exceeding PKR 50 million.

To promote economic development, the proposal focuses on Incentivisation by offering targeted tax relief for IT and AI-based research and development, green economy investment, and documented trade, including the restoration of Section 65A.

Under Digital Enablement, ACCA calls for an expansion of mandatory e-filing and integration of Point of Sale (POS) systems.

These measures are supported by successful international examples like Estonia’s e-Tax Board and India’s AI-driven tax audits.

The proposal also addresses the need for Dispute Resolution Reform by suggesting the reinstatement of judicial neutrality.

This would be achieved by appointing tribunal members through the Federal Public Service Commission (FPSC).

To ensure Accountability, ACCA recommends the creation of an Independent Tax Oversight Body, inspired by oversight institutions such as the TIGTA in the US and the Inspector-General of Taxation in Australia.

Strategic extracts from ACCA’s global Professional Insights reports are incorporated into the proposal, linking Pakistan’s tax policy reforms with global best practices and thought leadership.

The document also identifies the Top 3 Roadmap Priorities, which include Tax Law Simplification, Policy Certainty, and Real Estate Valuation Reform, outlining a structured path for urgent reforms.

Lastly, the proposal underscores the Professional Credentials of ACCA’s Members’ Network Panel and features contributions from global tax experts, reinforcing the proposal’s depth and credibility.

 “This document reflects our intent to contribute not just as technical advisors, but as partners in Pakistan’s economic development journey,” said Rauf Ali Jan FCCA, Chairman of ACCA Pakistan’s MNP and Head of the Taxation Subcommittee.

ACCA reiterates its willingness to work alongside public institutions, businesses, and civil society to support a fiscally sustainable and investment-friendly environment.

The full proposal is available on request and will be shared with key stakeholders and decision-makers in the coming weeks.

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