Pakistan National Assembly approves Federal Budget 2025-26

Islamabad: The National Assembly on Wednesday approved the Finance Bill 2025-26, including new income tax slabs for salaried individuals. All proposed amendments by the opposition were rejected by a majority vote.

According to the details, those earning Rs 6 lakh annually have been given complete tax exemption. A one percent tax has been imposed on Rs 6 lakh to Rs 12 lakh.6,000 fixed tax and 11 percent income tax will be paid on 12 lakh to 22 lakh rupees. 116,000 fixed tax and 23 percent income tax will be paid on 22 lakh to 32 lakh rupees. 346,000 fixed tax and 30 percent income tax will be paid on 32 lakh to 41 lakh rupees. 616,000 fixed tax and 35 percent income tax will be paid on more than 41 lakh rupees.

Similarly, a 5% tax will be levied on pensions exceeding Rs 1 crore per year. Those with pensions below Rs 1 crore will be exempted from tax.

Earlier, the federal cabinet, chaired by Prime Minister Shehbaz Sharif, approved the bill with minor amendments. Some proposed legal reforms were forwarded to the Cabinet Committee on Legislative Affairs. The cabinet also decided to form a committee to draft recommendations on gas-related issues for submission to the Supreme Court.