In a move likely to bring much-needed relief to the working population, the federal government is reportedly planning significant tax concessions for the salaried class in the upcoming fiscal budget 2025-26.
Sources within the Ministry of Finance revealed that the government is actively reviewing proposals to revise income tax slabs, aiming to reduce the financial burden on middle-income earners. The decision comes amid rising inflation and increasing demands from employee unions and economic experts to provide some breathing space to salaried individuals.
The planned reforms may include raising the tax-free income threshold and lowering tax rates in certain brackets. The changes, if approved, are expected to be officially announced in the federal budget scheduled for presentation in June.
Finance Minister Muhammad Aurangzeb is said to be spearheading efforts to make the budget more “people-friendly” and focused on economic revival, with a special emphasis on supporting the middle class, which has been hit hard by surging utility bills and stagnant wages.
Economic analysts have welcomed the move, stating that such relief can increase disposable income, boost consumer spending, and stimulate overall economic activity.
The final details of the tax relief are still under discussion and will be shared once the budget draft is finalized.
