Govt Set to Give Big Tax Relief For Those With Lower Salaries

The likely new income tax slabs for the salaried class under the federal budget 2025-26 revealed that a smaller rate of income tax would now be applicable from July 1, 2025, where annual taxable income exceeds Rs. 600,000, high-level sources informed ProPakistani. For individuals earning up to Rs. 600,000, there is no change as this bracket remains tax-free. This exemption ensures that the lower-income segment is not burdened with additional taxes. In the new federal budget 2025-26, where taxable income is between Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of tax would be cut by as much as 4 percent. In the income range of Rs. 1,200,000 to Rs. 2,200,000, the tax rate will likely be decreased by 3 percent. In the income range of Rs. 2,200,000 to Rs. 3,200,000, the tax rate will likely be decreased by 2.5 percent. In the income range of Rs. 3,200,000 to Rs. 4,100,000, the tax rate will likely be decreased by 2 percent. For individuals where taxable income exceeds Rs. 4,100,000, the tax rate will likely be decreased by 1.5 percent.