The federal government has revised income tax slabs for salaried individuals in the new budget, changing how much tax will be deducted from monthly income. The updates are part of broader tax relief measures announced by Finance Minister Muhammad Aurangzeb in the National Assembly. The changes aim to ease the burden on middle and higher-income earners.
According to budget proposals, monthly income between Rs183,333 and Rs266,666 will now face a reduced tax rate. The annual tax rate for this slab has been cut from 30 percent to 25 percent. Moreover, individuals earning around Rs466,666 per month will also receive relief. Their tax rate has been reduced from 35 percent to 29 percent.
In addition, those earning about Rs583,333 per month will see their tax rate lowered from 35 percent to 32 percent. The government said these adjustments are intended to provide relief to salaried taxpayers. Therefore, disposable income for several income groups is expected to improve.
The budget also removes a 9 percent surcharge previously imposed on higher-income earners. Furthermore, super tax on individuals earning between Rs15 crore and Rs50 crore annually has been abolished. However, certain sectors, including banks and oil and gas companies, will continue to be taxed.
Overall, the government said the revised structure is part of efforts to simplify taxation and support economic stability. The final rates will apply after approval of the finance bill. Consequently, actual deductions will depend on the implemented law.