ISLAMABAD – The Senate Standing Committee on Finance has proposed increasing the minimum taxable income to Rs1.2 million in order to provide more relief to salaried individuals.
The committee has proposed abolishing the income tax on individuals earning up to Rs100,000 per month. The recommendation was made during a recent budget discussion session, aiming to provide relief to low and middle-income earners struggling with inflation.
Senator Shibli Faraz emphasized that in the current economic conditions, a monthly income of Rs 100,000 holds much less value and should not be taxed. “In this era, Rs100,000 is practically worth Rs 42,000 due to inflation,” he stated.
Meanwhile, the ederal Board of Revenue (FBR) announced that under the new budget proposals, income generated by private clubs will be brought under the tax net.
FBR Chairman Rashid Mahmood Langrial argued that these clubs serve a privileged segment of society and do not benefit the common citizen.
The minister of state for finance supported the view, calling the move necessary to tax the elite and promote fiscal fairness.
Members of the committee also backed the proposal, indicating broad support for imposing taxes on high-end recreational facilities.
It is recalled that the federal government presenting its budget 2025-26 on June 10 and proposed reducing tax rate to 1 percent from 5pc for those earning between Rs600,000 to Rs1.2m annually.
