What Relief Has the Budget Offered to Salaried Class?

News Desk

Islamabad: The federal government has announced major relief measures for the salaried class in the budget for the new financial year, offering lower income tax rates, salary increases, and incentives for businesses and property investors.

Presenting the budget in the National Assembly, Finance Minister Muhammad Aurangzeb said the government aims to reduce the financial burden on taxpayers struggling with inflation and rising living costs.

Big Relief for Salaried Employees

Under the new tax structure, employees earning between Rs 2.2 million and Rs 3.2 million annually will now pay 20 percent income tax instead of 23 percent.

Similarly:

• Tax on annual income between Rs 3.2 million and Rs 4.1 million has been reduced from 30 percent to 25 percent.
• Tax on income between Rs 4.1 million and Rs 5.6 million has been cut from 35 percent to 29 percent.
• Salaried individuals earning between Rs 5.6 million and Rs 7 million annually will now pay 32 percent tax instead of 35 percent.

The government says these reductions are aimed at easing pressure on the country’s middle and upper-middle salaried class.

7 % Salary and Pension Increase

The budget also includes a 7 percent increase in salaries and pensions for government employees and retirees.

In another relief measure, the minimum monthly wage for laborers has been proposed to increase by 10 percent, signaling an effort to support low-income households amid persistent inflation.

Relief for Businesses and Investors

The government has also announced tax concessions for businesses and non-salaried sectors.

According to the finance minister:

• Super tax on annual income between Rs 150 million and Rs 500 million will be abolished.
• Super tax on income above Rs 500 million has been reduced from 10 percent to 8 percent.

The property sector has also received incentives:

• Tax on property sales for filers reduced from 5.5 percent to 2.75 percent.
• Tax on property purchases reduced from 2.5 percent to 1.25 percent.

The government believes these steps will encourage investment, boost business confidence, and revive construction and real estate activity.

The latest budget reflects the government’s attempt to balance public relief with economic recovery as Pakistan continues to navigate fiscal pressures and growth challenges.