The SITE Association of Industry (SAI) has presented a robust set of budget proposals for the Federal Budget 202526, urging strategic reforms to drive industrial expansion and boost Pakistan”s export competitiveness.

In its recommendations, SAI underscored the importance of transforming the budgetmaking process into a strategic economic tool, as articulated by SAI President Ahmed Azeem Alvi and former president Riaz Uddin. They stressed the institutional separation of tax policy formulation from administration, citing global examples such as the UK.

SAI highlighted the narrow tax base, recommending an expansion to include untaxed sectors and a cap on the maximum income tax rate for businesses. It also called for the removal of the Super Tax and changes to recent amendments in the Income Tax Ordinance, which it believes could deter compliance.

Sales tax reforms were another focal point, with SAI proposing a harmonized GST structure and a reduction in the sales tax rate. The association also advocated for the abolition of additional sales taxes and the maintenance of exemptions on essential goods.

Further recommendations included restoring zerorating on export facilitation schemes and removing areaspecific tax exemptions to ensure uniformity. Comprehensive reforms in Pakistan Customs were also proposed to address tariff fragmentation and improve enforcement.

In social welfare, SAI criticized the current management of employee welfare programs and suggested their integration into a unified authority for better governance.