The federal budget has announced significant relief for the salaried class, including notable reductions in income tax rates across various income slabs. The government has decided to simplify the tax structure for middle- and high-income earners.
For individuals earning between PKR 183,000 and PKR 266,000 per month, income tax has been reduced by 3 percentage points. The annual tax rate for this slab has been lowered from 23% to 20%, providing direct relief to millions of salaried workers.
Similarly, the tax rate for those earning up to PKR 341,000 per month has been reduced from 30% to 25%. For individuals earning up to PKR 466,000 per month, the proposed tax rate has been cut from 35% to 29%.
Those earning around PKR 583,000 per month will also benefit from a tax reduction, with the annual tax rate lowered from 35% to 32%. In addition, the 9% surcharge previously imposed on high-income salaried individuals has been completely abolished.
Furthermore, the super tax on annual incomes ranging from PKR 150 million to PKR 500 million has been eliminated. For incomes exceeding PKR 500 million, the super tax has been reduced from 10% to 9%.
However, the surcharge on banking, oil and gas, and fertilizer companies will remain in place.
