Pakistan's 2025-2026 Budget: Income Tax Cuts Bring Relief to Salaried Workers

Pakistan's 2025-2026 Budget Brings Income Tax Relief for Salaried Employees Pakistan's recently announced budget for the fiscal year 2025-2026 includes significant changes to income tax rates for salaried individuals. The changes, which are expected to provide substantial relief to many taxpayers, have been welcomed by various sectors of the population. The most notable change is a reduction in the tax rate for those earning between 600,000 and 1,200,000 PKR annually. According to the budget, this bracket will see a decrease in their annual tax burden from 30,000 PKR to 6,000 PKR. This represents a substantial saving of 24,000 PKR per year. "This is a welcome change," said one government official, "It will help alleviate the financial burden on many families." The reduction in tax rates extends to other income brackets as well. For example, those earning between 2,400,000 and 2,700,000 PKR annually will see a decrease of 6,667 PKR per month. The government has stated that these changes are part of a broader effort to improve the economic well-being of the country's citizens. The new tax rates are expected to have a positive impact on consumer spending and economic growth, as individuals will have more disposable income. The budget also includes other measures aimed at stimulating economic activity, such as investments in infrastructure and education. The overall impact of this budget on the Pakistani economy remains to be seen, but the income tax relief is a significant step towards improving the financial lives of many.