Minimum turnover tax (MTT)
Reform ID		F712
Description		Under Section 113 of the ITO, 2001, MTT is charged at 1.25% of turnover when normal tax falls below this threshold. It applies to resident companies, non-resident PEs, and to individuals and AOPs with turnover of Rs. 100 million or more. This disproportionately affects low-margin businesses and burdens loss-making startups and increasing failure risk.
Department		Federal Board of Revenue - FBR-IRS
Jurisdiction / Location		Federal - Entire Pakistan
Sector		All Sectors
Start Date		03-06-2026
Target Deadline
Date Enacted
Implementation Status		In Progress
Progress		0%
CCORR Direction
Cost Savings PKR (Mil.)
Evidence