Here's how much your income tax may be reduced in FY26

Some relief may finally be in the cards for Pakistan's salaried class; government sources informed Nukta on Tuesday that Pakistan has managed to convince the International Monetary Fund (IMF) to reduce tax rates on salaried income.

The Pakistan government and the IMF have been holding virtual discussions on the budget for fiscal year 2025-26. Government officials have managed to convince the international lender that expected shortfall from the tax breaks will be plugged through other sources.

Data from Pakistan's tax collection body — the Federal Board of Revenue — revealed that income tax collection from salaried class in 10 months of the current fiscal year amounted to PKR 448 billion compared with PKR 348 billion collected in same period last year.

Analysts expect that tax collection from salaried class might reach around PKR 550 billion by year end.