Pakistanis earning up to Rs12Lac annually to get Income Tax Relief in Budget 2025-26? 12:17 pm | Jun 1, 2025 ISLAMABAD – A sigh of relief for Pakistan’s salaried class, as Federal Board of Revenue (FBR) proposed reduction in income tax rates for the upcoming fiscal year 2025–26 amid ongoing negotiations with the International Monetary Fund (IMF) ahead of the federal budget to be presented on June 10. Under FBR’s proposal, the first income slab for those earning between Rs6Lac and Rs12Lac annually, may see their tax rate cut from 5pc to just 1pc. This means individuals in this category would pay only Rs 6,000 to Rs 12,000 per year in taxes, down from Rs 30,000 to Rs 60,000, depending on their income level. IMF also responded by suggesting compromise at 1.5pc, which would still mean a significant tax reduction and lower financial pressure on low- to middle-income earners. If implemented, individuals in this bracket would pay up to Rs 9,000 annually. For higher-...
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