The government has decided not to publicly disclose the exact fiscal impact of the tax relief measures proposed in the Finance Bill 2026–27, citing ongoing negotiations with the International Monetary Fund (IMF).
Despite the lack of official disclosure, government officials privately informed lawmakers that the proposed tax relief package could reduce revenue collection by approximately Rs. 360 billion during the next fiscal year. The estimated revenue loss is linked to planned tax reductions for salaried individuals, exporters, the real estate sector, and proposed changes to the super tax framework.
The proposed tax measures remained a key focus during parliamentary committee discussions, where lawmakers examined various taxation-related issues, including taxes on exporters, retailer documentation requirements, taxation of digital income, and strategies to expand the country's tax base.
Among the proposals under consideration is a 5% withholding tax on income earned through social media platforms. The move is aimed at bringing growing digital earnings into the formal tax system as online content creation and digital business activities continue to expand.
At the same time, the government is considering retaining certain tax exemptions and introducing improvements to the tax refund process. Officials believe these measures could support businesses, encourage compliance, and improve the overall efficiency of the taxation system.
The ongoing discussions reflect the government's broader effort to strike a balance between providing economic relief and maintaining revenue generation. While several sectors are expected to benefit from proposed tax cuts, authorities are also focusing on strengthening documentation procedures and increasing the number of registered taxpayers.
Tax experts note that the final shape of the tax package will depend on the outcome of discussions with the IMF and other stakeholders. The government is expected to finalize the proposals after completing consultations and securing the necessary approvals.
The Finance Bill 2026–27 remains under review, and additional amendments may be introduced before the budget measures are formally approved and implemented.