FBR Willing to Give Tax Relief to Salaried Class in FY26 Budget If IMF Approves

The Federal Board of Revenue (FBR) has proposed income tax relief for the salaried class in the upcoming federal budget, if the International Monetary Fund (IMF) approves. The IMF mission is scheduled to visit Pakistan in the second week of May 2025 to review budget proposals. Separately, the government has deferred its Tax Laws Amendment Bill—which aimed to block property purchases above Rs. 10 million without proof of taxable income—until the 2025-26 budget. A sub-committee of the National Assembly’s Finance Committee recommended shifting the authority to set the transaction threshold from FBR to the federal government. Exemptions for lower and middle-income groups will be included. A proposal by real estate stakeholders to raise the cap to Rs. 50 million was rejected. The revised version of the bill will be included in the Finance Bill 2025. The Pakistan Dairy Association has also urged the government to reduce sales tax on packaged milk and powdered milk from 18 percent to 5 percent in the next budget. It has reported a 20 percent drop in packaged milk sales, with the informal sector gaining Rs. 1.3 trillion in untaxed revenue due to the shift toward loose milk.