The federal government has announced tax relief for the salaried class by reducing rates across four income slabs. The decision was revealed by Finance Minister Muhammad Aurangzeb during the federal budget presentation in the National Assembly. The move aims to ease financial pressure on salaried individuals. It comes as part of broader fiscal measures in the new budget.
The finance minister said the government recognizes the difficulties faced by both public and private sector employees. He added that Prime Minister Shehbaz Sharif directed relief measures for the salaried class. Moreover, he said the policy reflects efforts to support middle-income earners. Therefore, the government introduced revised income tax rates.
Under the new proposal, individuals earning between Rs2.2 million and Rs3.2 million annually will see tax rates reduced from 23 percent to 20 percent. In addition, those earning between Rs3.2 million and Rs4.1 million will face a reduced rate of 25 percent instead of 30 percent. The changes aim to improve disposable income levels.
Furthermore, taxpayers earning Rs4.1 million to Rs5.6 million will see rates cut from 35 percent to 29 percent. Similarly, those earning Rs5.6 million to Rs7 million will be taxed at 32 percent instead of 35 percent. These adjustments apply to four salaried income slabs under the budget proposals.
Overall, the government said the reforms are designed to provide relief amid economic challenges. The measures will be reviewed as part of the full budget approval process. Consequently, the final implementation will depend on parliamentary approval of the finance bill.