Since Pakistan is preparing to unveil its federal budget for the 2025-26 fiscal year, preliminary details show that the government is considering tax-related relief measures, which aims to reduce the burden on the salaried class.
Sources show that the government is considering increasing the doorstep of annual tax revenue from Rs 600,000 to Rs 800,000.
Along with this adjustment, changes in the current Income Tax slab are also expected to be part of a wider effort to reduce the financial burden on salaried employees. However, these relief measures are likely to be subject to the approval of the International Monetary Fund (IMF), with which the government is currently engaged in talks.
According to the Federal Board of Revenue (FBR), only low tax slabs are expected to be amended, which does not have an immediate plan to increase relief to high -income people.
Officials have revealed that there are currently three suggestions, one of them includes increasing the income limit for the first tax slab, which potentially affects individuals who earn more than Rs 50,000 a month. In addition, there are plans to facilitate the process of income tax returns so that it can be made more user -friendly and transparent.
There is also a strong possibility that those who earn between 600,000 and Rs 1.2 million annually will receive some tax support in the new budget.
In parallel, the government is reviewing a new tax -imposing framework for high income -earning pensioners. According to the suggestions under consideration, a pension income of up to Rs 800,000 annually can be taxed 5 %. Those who are earning between 800,001 and Rs 1.5 million may face 10 % tax, while Rs 12.5 % tax can be levied on income from Rs 1.5 million to Rs 2 million. The pensioners can be subject to a 15 % tax of Rs 2 million annually to Rs 3 million, and those who receive more than Rs 3 million can see their income at 20 % tax.
Officials have emphasized that the proposals are still in the early stages and will go through a detailed process of review and consultation before making final decisions.
The federal budget for 2025-26 is expected to be presented later this year, with more details likely to come out as a conversation with stakeholders and the IMF is underway.
