A. Background

1. This refers to QCs in trail, blue, italic and after double line (a) TLQC3411 of 9.1.26 about Budget Proposals FY 2026-27 to SRB 2026-27 by 6.2.26 (b) CDQC297 of 23.12.25 about Customs Budget Proposals by 10.2.26 & KC Recommendation (c) TLQC3128 of 17.5.25 about Budget Proposals FY 2025-26 for Direct & Indirect Taxes by LTBA

2. We also refer to several Other QCs including (a) TLQC3011 of 21.1.25 about Budget Proposals 2025-26 for IT, ST, FED & ICT (b) TLQC3009 of 21.1.25 about Budget Call Circular FY 2025-26 & KCV (c) CDQC270 of 28.1.25 about Customs Budget Proposals sought by 15.2.25

B. Update Commentary

1. Further to KQU 3732 of 8.1.26, being an important matter, we would inform you about Proposal for Federal Income Tax, Sales Tax & FED & Sindh Budget 2026 of 6.2.26 - KTBA (Attachment 3412.2)

2. The Direct & Indirect Tax Committee of the KTBA is compiling Budget Proposals for presentation to FBR & SRB ahead of budget exercise 2026. Your feedback is important for making this exercise comprehensive and effective.

3. We kindly request you to advance your proposals separately for direct & indirect taxes for FBR and SST by 31.1.26 in the following format

Your input will significantly contribute to budget making exercise for public good.

KTBA appreciatea your time and cooperation in this matter.

C. Kasbati & Co Recommendation

If you are not a KTBA member, you can send these to your Tax Advisor, who is a KTBA Member.

D. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.