ISLAMABAD: The Institute of Cost and Management Accountants of Pakistan has proposed a range of new taxes and policy measures for Budget 2026-27, targeting digital services, online gaming, corporate advertising and second-home ownership to expand the country’s tax base.
The proposals were submitted to the Tax Policy Office under the Ministry of Finance. ICMA stated that its recommendations align with economic priorities, sectoral challenges and global best practices focused on improving documentation and revenue generation.
Focusing on the digital economy, ICMA recommended introducing a Digital Services Tax (DST) to capture revenue from streaming platforms, mobile applications and online services. Additionally, it proposed a regulated licensing regime for online and speculative gaming, allowing only authorised operators to function under government oversight. A 2 percent tax on gross revenues from gaming platforms has also been suggested.
Corporate, property and financial sectors in focus
Meanwhile, ICMA proposed new levies on large businesses and property holdings. It recommended taxing corporate advertising and brand promotion expenditures for companies with annual turnover exceeding Rs100 million, using existing invoicing systems to ease compliance.
Furthermore, the body suggested an Additional Residential Property Tax (ARPT) on second homes valued above Rs20 million, while exempting primary residences and first-time buyers. The measure aims to discourage speculative real estate investment and improve housing availability.
In addition, ICMA proposed a Financial Transaction Tax (FTT) on equities, derivatives and digital asset trades to tap into financial market activity.
To address long-pending disputes, it also recommended a one-time settlement scheme, enabling taxpayers to resolve cases by paying a reduced portion of the disputed amount.
