ISLAMABAD – The newly unveiled federal budget for fiscal year 2025-26 has provided yet another relief to the salaried class. The tax slabs and rates were adjusted to provide relief as part of the government’s agenda.
The budget proposal includes the following:
- For individuals earning between PKR 600,000 and PKR 1,200,000 annually, a tax of 1 percent will be applied to the income exceeding PKR 600,000.
- Individuals earning over PKR 1,200,000 but under PKR 2,200,000 will incur a tax of 11 percent on the income exceeding PKR 1,200,000, along with a fixed tax of PKR 6,000.
- For the income bracket exceeding PKR 2,200,000 but less than PKR 3,200,000, a tax rate of 23 percent will apply to the amount exceeding PKR 2,200,000, in addition to a fixed tax of PKR 116,000.
