The Institute of Cost and Management Accountants of Pakistan (ICMA) has proposed a wide range of new taxes and policy measures for the Budget 2026–27, aiming to expand the country’s tax base and improve revenue collection.
The proposals were submitted to the Tax Policy Office under the Ministry of Finance. ICMA said the recommendations are based on economic needs, sector challenges, and international best practices to improve documentation and increase revenue.
A major focus of the proposals is the digital economy. ICMA has suggested introducing a Digital Services Tax on online platforms such as streaming services, mobile apps, and gaming. The aim is to bring more digital activity into the formal tax system. It also proposed a licensing system for online gaming, where only registered operators would be allowed to operate under government supervision, along with a 2 percent tax on their gross revenue.
To increase revenue from large businesses, ICMA recommended a tax on corporate advertising and promotional spending for companies with annual turnover above Rs. 100 million. It also proposed an Additional Residential Property Tax on second homes or investment properties valued above Rs. 20 million, while keeping primary homes and first-time buyers exempt.
The institute also suggested introducing a Financial Transaction Tax on activities such as stock trading, derivatives, and digital assets to capture revenue from financial markets.
To resolve pending tax disputes, ICMA proposed a one-time settlement scheme that would allow taxpayers to settle cases by paying a reduced amount. It also recommended launching a national consumer receipt lottery, where people could win cash prizes by submitting purchase receipts, encouraging better documentation of retail transactions.
ICMA further proposed a windfall tax on sectors such as sugar, oil and gas, and fertiliser during periods of unusually high profits caused by global price changes.
In the construction and urban development sector, the institute recommended adopting Building Information Modelling (BIM) nationwide to improve planning and monitoring of projects. It also suggested a small levy on commercial property transactions and tax incentives for environmentally friendly buildings.
On the environmental side, ICMA proposed several green taxes and incentives, including tax relief for electric vehicle charging stations, a landfill disposal tax on waste, and a carbon and pollution levy for high-emission industries. It also recommended a green transport levy on fuel and high-emission vehicles, along with a carbon market levy for businesses involved in carbon trading.
According to ICMA, these proposals are intended to support sustainable development, encourage cleaner technologies, and generate additional funding for environmental and economic initiatives.
