Pakistan likely to reverse tax relief for salaried class earning PKR 1.2 million per year
Budget proposal to reduce tax from 2.5% to 1% under review; funds may be redirected to support pension and government salary increases
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The Pakistan government is likely to reverse the decision of giving relief to salaried individuals earning PKR 1.2 million annually, sources informed Nukta on Friday.
In the budget for fiscal year 2025-26, the government had proposed to cut the tax rate on such individuals from 2.5% to 1%.
However, it is likely to reverse that decision, the sources said.
The National Assembly Committee on Finance has commenced discussions on the probable withdrawal as well as the relief offered to indidivuals earning in other tax slabs, they said.
According to the sources, the amount collected through the withdrawal of relief would likely be used to give benefits to pensioners and government employees.
The government has proposed a raise in the pension amount by 6% and government salaries by 10%.
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