Prime Minister Shehbaz Sharif has announced a significant reduction in income tax rates for salaried individuals as part of the government’s efforts to alleviate financial pressures on the middle class. The decision is expected to provide relief to millions of working professionals, enabling them to retain a larger portion of their earnings.
During a high-level meeting, PM Shehbaz emphasized that the reduction in income tax was a crucial step to ensure economic stability and provide greater disposable income to the salaried class, who are the backbone of Pakistan’s economy. He also highlighted that the move would foster a more favorable business environment and encourage spending, which is vital for the nation’s economic recovery.
The new tax structure will be implemented starting next fiscal year, with detailed guidelines to be released by the Federal Board of Revenue (FBR). The reduction is expected to benefit individuals earning within the middle-income brackets, with an emphasis on workers in urban areas.
Experts have lauded the decision, calling it a positive step toward tax reforms aimed at making the tax system more equitable. However, some have raised concerns about the potential impact on government revenue, urging the administration to balance fiscal policies with sustainable economic growth.
The government has also promised to continue working on other policies that support the salaried class, including improving social security benefits and creating more job opportunities.
