Budget 2025-26: Will low-income segment breathe easy amid tax relief proposals?
Business
Govt is working on proposals and relief will be possible only after IMF proposal
ISLAMABAD (Mudassar Ali Rana) – Almost a week after Federal Finance Minister Muhammad Aurangzeb announced that the government will bring relief for the weighed down salaried class in the upcoming budget, the government is working on a detailed relief plan for the people whose salaries fall in the category of 5pc tax slab.
The relief is expected to be announced for those having annual salaries exceeding Rs600,000 up to Rs1,200,000.
According to the Federal Board of Revenue (FBR) sources, the exemption or reduction of tax for lower salaried people is made conditional with the approval of the International Monetary Fund (IMF).
The authorities are set to discuss the relief proposal with Prime Minister Shehbaz Sharif soon. It includes revision of tax slabs for those earning in excess of Rs50,000 a month and easing the income tax return draft.
Salaried Class Alliance demands relief from FinMin in fresh letter
It is pertinent to mention that the Salaried Alliance Pakistan had written a letter to the finance minister in which they called for a revision of tax slabs, an increase in exemption limits, the reintroduction of key deductions, and a focused effort to bring undocumented sectors into the tax net - aimed at creating a fairer and more balanced taxation system.
“Salaried individuals are already struggling with stagnant wages amid historically high inflation, making it difficult to maintain a reasonable standard of living,” the letter said.
“It is imperative for the government to intensify efforts to widen the tax base, bringing undocumented sectors—such as real estate, wholesale trade, and informal businesses—into the formal taxation framework. This will alleviate the burden on compliant taxpayers and support sustainable revenue growth,” the Alliance further stressed.
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