ISLAMABAD – The federal government has planned to provide a 2.5 percent relief in tax slabs for the salaried class in the upcoming budget for fiscal year 2025–26.
However, the final decision will be taken after talks with the International Monetary Fund (IMF) as first round is set to begin today, May 14.
In a recent meeting, Federal Finance Minister Muhammad Aurangzeb told Prime Minister Shehbaz Sharif that several proposals are being reviewed to provide tax relief to the salaried class in the next budget. They also discussed the measures to expand the tax net.
Reports said relief will be provided across all tax slabs for the salaried class in the upcoming fiscal year’s budget, and a 2.5% reduction in income tax rate for the corporate sector is also under consideration.
Expected Income Tax on Rs100,000 Salary
Reports claimed that the income tax on a monthly salary of Rs100,000 may be reduced from 5 percent to 2.5%. If it is implemented, the salaried person will pay Rs2,500 in wake of income tax on monthly income of Rs100,000.
Similarly, the income tax on a monthly salary of Rs183,000 could be reduced from 15% to 12.5%; on a monthly salary of Rs267,000, it may go down from 25% to 22.5%; and on a salary of Rs333,000, and the tax rate may drop from 30% to 27.5%.
Similarly, for monthly salaries above Rs333,000, the income tax rate may be reduced by 2.5% to 32.5%.
When Will Budget 2025-26 Be Presented?
The federal government is expected to present the budget for next fiscal year on June 2 or 3 as Pakistan needs to get approval for the budget before unveiling it.
