Relief for salaried class: Government proposes significant income tax cuts

Islamabad: The federal government has announced major income tax relief for the salaried class in the new budget.

Presenting the budget in the National Assembly, Finance Minister Muhammad Aurangzeb proposed reduced tax rates across various income slabs: for annual income between Rs. 600,000 and Rs. 1.2 million, the tax rate will be cut from 5% to 2.5%. For incomes up to Rs. 2.2 million, the rate will drop from 15% to 11%. Those earning between Rs. 2.2 million and Rs. 3.2 million annually will see a reduction from 25% to 23%.

Additionally, to help kerb brain drain, the government has proposed a 1% reduction in the income surcharge on individuals earning over Rs. 10 million annually.

The minister emphasised the government’s awareness of the growing tax burden on skilled professionals and its commitment to easing that pressure.