Good News for Salaried Individuals: Income Tax Relief Expected in Upcoming Budget

Islamabad — Salaried employees across Pakistan may soon receive much-needed tax relief, as the upcoming federal budget is expected to include major changes in income tax slabs.

Sources reveal that the final round of budget discussions between the Government of Pakistan and the International Monetary Fund (IMF) is underway, and tax concessions for the salaried class are strongly possible.

Prime Minister Shehbaz Sharif has reportedly directed officials to provide relief to salaried workers, especially after the government collected more income tax than anticipated from this segment during the current fiscal year.

Proposals being considered feature a 2.5% cut in income tax rates for all salary brackets. Moreover, the tax exemption threshold is expected to increase from PKR 600,000 to PKR 1,000,000.

If approved, these measures would benefit individuals earning between PKR 50,000 and PKR 300,000 per month, providing significant financial relief amid ongoing inflation and economic pressure.