ISLAMABAD (Kashmir English): The federal cabinet, under the chairmanship of Prime Minister Shehbaz Sharif, has approved a Finance Bill 2025-26 with substantial tax reliefs for the salaried class in the upcoming federal budget 2025-26.
As per details, the new budget reduces tax rates across all income slabs for salaried individuals. The salaried people earning up to Rs 6 lakh are exempted from tax.
People earning a salary of Rs 6 lakh to Rs 1.2 million will pay 1 per cent tax on the amount above Rs 6 lakh. The Finance Bill further added that the tax rate has been set at 1 per cent, with the tax liability on an income of Rs1.2 million reduced from Rs30,000 to Rs6,000.
For the income up to Rs2.2 million, the tax rate has been slashed from 15 per cent to 11 per cent. The tax rate has been lowered from 25 per cent to 23 per cent for the income between Rs2.2 million and Rs3.2 million
These reductions across all tax slabs reflect the government’s commitment to supporting the salaried class, which has faced significant economic pressures due to inflation and rising living costs.
