Relaxation in Income Tax for Salaried Persons in Budget 2025-26

As per the daily Dunya dated 16 April 2025, there is a proposal for Relaxation in Income Tax for Salaried Persons in Budget 2025-26. There may be a tax relaxation on an income of 0.6 million per annum. The Prime Minister of Pakistan will give the final approval of the same. The details are as follows:

There are chances for changes in Tax Slabs but these slabs may be for the lower income employees. There is no proposal for change in slabs for the heavy-income salaried employees. If the IMF agrees, the employees with a salary of more than 50 thousand will be included in the first slab.

As per the FBR quoted by the Daily Dunya, the FBR has prepared three proposals for change in income tax slabs and to give the employees relief in the coming annual budget 2025-26.

Three Proposals for Income Tax

The three expected changes are as follows:

Relaxation in income tax for employees having a salary of more than 50,000 per month (Maximum maybe 0.1 million)
Income Tax filing system easy
Changes in Income Tax Slabs

The FBR will submit all these proposals to the Prime Minister of Pakistan, and the PM will finally approve them. At this time, employees pay a 5% tax on annual incomes between 6 lacs and 12 lacs. If the IMF approves, these employees will be exempt from income tax.

I have already prepared the Income Tax Calculator 2024-25 Salaried Persons which is for the current financial year. The new relaxation if the IMF agrees is for the coming financial year 2025-26.

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The Government should also give relaxation for other employees who are paying heavy income tax on salaries. In addition to that the employees request the Govt to increase in their House Rent Allowance, Conveyance Allowance and Medical Allowance in the Budget 2025-26.