FBR Proposes Tax Relief for Salaried Class in Upcoming Budget
- Abeera Marium Siddiqui
- April 17, 2025
- 2:48 pm
- 38
- Current Affairs
The Federal Board of Revenue (FBR) has proposed tax relief for the salaried class in the upcoming 2025-26 budget. These proposals aim to ease the financial burden on middle and lower-income earners in Pakistan. The government is considering raising the taxable income threshold, which could significantly reduce the amount salaried individuals need to pay in taxes.
The FBR’s proposal suggests raising the taxable income threshold from Rs. 600,000 to Rs. 800,000. This change could mean that salaried individuals earning up to Rs. 800,000 annually may not need to pay any taxes. This would be a significant benefit for workers who earn around Rs. 50,000 per month, helping them keep more of their earnings.
The FBR also wants to revise the income tax slabs. This would help reduce the tax burden for individuals in lower-income brackets. However, the government has made it clear that these changes will not affect higher-income earners.
Moreover, the FBR plans to simplify the tax filing process. This would make it easier for salaried individuals to file their taxes without needing to hire an expert. It will increase transparency and make the tax filing system more user-friendly for everyone.
In addition, the government is reviewing the tax policies for pensioners with higher incomes. Pensioners earning up to Rs. 800,000 annually could pay lower taxes. However, pensioners with higher incomes may see a gradual increase in their tax rates.
These proposals are still under review. The final decisions will depend on the approval of the International Monetary Fund (IMF). The IMF’s approval is important as Pakistan is negotiating with the IMF for fiscal reforms and financial support.
If the government approves these proposals, salaried individuals, especially those in lower and middle-income brackets, could see real tax relief. This change could make it easier for many people to keep more of their earnings and reduce the overall tax burden on the salaried class.
