Proposed details to provide relief to salaried class, however, are subject to approval of IMF, say sources
ISLAMABAD: (UrduPoint/Pakistan Point News-April 16th, 2025) The proposed details on Wednesday revealed that the salaried individuals might receive relief in Pakistan's upcoming federal budget for fiscal year (FY) 2025-26.
It is expected that the federal government would increase the taxable income threshold from Rs600,000 annually in the 2025-26 budget in an effort to provide relief to salaried class.
The details showed that it is also expected that the tax slabs would be revised.
The proposals to provide relief to salaried individuals would be subject to the approval from the IMF. On the other hand, a proposal to impose a tax ranging from 5% to 20% on pensioners receiving high pensions is also being reviewed.
According to the FBR (Federal board of Revenue), only the lower tax slabs would be changed in the upcoming budget. There are currently no proposals for relief for individuals in the higher income brackets.
The officials stated that three proposals are under consideration to provide relief to the salaried class in the next fiscal year's budget.
“One possibility is that the annual income threshold for individuals earning Rs50,000 or more per month in the lowest tax slab might be increased. Additionally, the taxable income limit could be raised from Rs 600,000 to Rs800,000 annually but a final decision would be made after further consultations.
Moreover, the income tax return forms would be made simpler and easier, and changes would be made in the tax slabs.
It is also likely that the relief would be provided to those earning between Rs600,000 to 1.2 million annually.
The sources said that a 5% tax might be imposed on pension income up to Rs800,000 annually, 10% on income between Rs800,000 to 1.5 million, 12.5% on income between Rs. 1.5 million to 2 million, 15% on income between Rs2 million to 3 million, and 20% on income exceeding Rs3 million annually.
The sources said that these are preliminary proposals, and after a detailed review and consultation, the final recommendations would be included in the budget.
