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Pakistan Business

Government to propose tax cuts for salaried workers in the budget

Revised income tax slabs aim to provide relief for low- and middle-income earners

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Shahzad Raza

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Shahzad; a journalist with 12+ years of experience, working in Multi Media. Worked in Field, covered Big Legal Constitutional and Political Events in Pakistan since 2012. Graduate of Islamic University Islamabad.

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Government to propose tax cuts for salaried workers in the budget
Salaried taxpayers demand relief as Pakistan’s burden outpaces regional peers
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Pakistan government is likely to propose changes to income tax slabs aimed at providing relief to salaried individuals.

The revisions, outlined under Division-I, Part-I of the First Schedule, would adjust tax rates for different income brackets.

Under the new structure:

  • Individuals earning up to PKR 600,000 would pay no income tax.
  • Those earning between PKR 600,001 and PKR 1.2 million would be taxed 1% on income exceeding PKR 600,000.
  • For incomes between PKR 1.2 million and PKR 2.2 million, a fixed tax of PKR 6,000 plus 11% on amounts above 1.2 million would apply.
  • Earnings from PKR 2.2 million to PKR 3.2 million would incur PKR 116,000 plus 23% on the excess over PKR 2.2 million.
  • The PKR 3.2 million to PKR 4.1 million bracket would see a PKR 346,000 base plus 30% on income in excess of PKR 3.2 million.
  • Those earning above PKR 4.1 million would pay PKR 616,000 plus 35% on the surplus.

Officials said the adjustments aim to ease financial burdens on salaried workers.

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