Summary Pakistan proposes income tax cuts for salaried employees in four income brackets, aiming to ease financial pressure nationwide.
ISLAMABAD (Web Desk) - Pakistan's government has proposed income tax reductions for salaried employees across four income brackets as part of the federal budget, aiming to ease the financial burden on middle- and upper-income earners.
Presenting the budget in the National Assembly, Finance Minister Muhammad Aurangzeb said the government of Prime Minister Shehbaz Sharif was fully aware of the challenges facing both public and private sector salaried workers.
Aurangzeb said that, on the instructions of the prime minister, the government had decided to provide tax relief to salaried individuals in four income slabs.
Under the proposed measures, salaried employees earning between Rs2.2 million and Rs3.2 million annually would see their tax rate reduced from 23% to 20%.
For individuals earning between Rs3.2 million and Rs4.1 million per year, the government has proposed lowering the tax rate from 30% to 25%.
The finance minister further announced that those with annual incomes ranging from Rs4.1 million to Rs5.6 million would benefit from a reduction in income tax from 35% to 29%.
Similarly, salaried employees earning between Rs5.6 million and Rs7 million annually would see their tax rate cut from 35% to 32%, according to the budget proposal.
The government said the proposed tax relief measures are intended to provide financial support to the salaried class amid ongoing economic pressures.
