Pakistan abolishes super tax on major exporters
Pakistan has settled on giving a major tax relief to its export sector by abolishing the Super Tax for companies that earn majority of their income from exports.
The decision was sanctioned under the Finance Bill 2026.
This rule enables an additional tax relief to any company that produces more than 80% of its revenue from exports.
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Originally, the government had intended to reduce the taxes from 10% to 8%, but completely removed it for eligible companies.
The benefits from this move largely accommodate major export sectors, specifically Pakistan’s apparel sector, which earns a big share of its proceeds from foreign sales.
The decision is more likely to aid primary companies such as Interloop Limited, Gul Ahmed Textile Mills, and Feroze1888 Mills.
Financial commentators reckon the policy could significantly enhance remuneration for these companies.
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For instance, Interloop’s revenue is anticipated to escalate and market experts have enhanced their assessment of its stock, while remaining positive about the company.
The Super Tax was first initiated back in 2015 as a momentary measure to attract investment for national recovery, after security operations.
Nonetheless, as time went by, it proceeded to become a permanent cost for large enterprises.
Some of the many critics from exporters included the argument of it reducing their capacity to contend globally, particularly when paired up with inflated energy prices, climbing interest rates and postpones in tax recoveries.
With this new exemption, the government is signaling a shift toward supporting export growth and improving the competitiveness of Pakistani industries in global markets
