The Federal Government has proposed relief in income tax rates for the salaried class in the Budget 2025-26. The new budget outlines revised tax slabs and rates, aiming to adjust the financial burden on employees.
As per the budget proposals:
- For individuals earning between PKR 600,000 and PKR 1,200,000 annually, a 1 percent tax will be imposed on income exceeding PKR 600,000.
- Those with an annual income greater than PKR 1,200,000 but less than PKR 2,200,000 will face an 11 percent tax on income above PKR 1,200,000, in addition to a fixed tax of PKR 6,000.
- For the income bracket exceeding PKR 2,200,000 but less than PKR 3,200,000, a 23 percent tax will be applicable on the amount above PKR 2,200,000, along with a fixed tax of PKR 116,000.
