Islamabad August 3, 2024: The government is considering reducing the tax rate for the salaried class. Discussions will be held with the IMF to review tax rates for salaried individuals, particularly those earning PKR 1 million per year.
In the FY25 budget, the annual tax for individuals deriving more than 75 percent of their income from salaries was doubled from PKR 10,000 to PKR 20,000. For those with an annual income of PKR 1.5 million, the annual tax was increased by 1.4 times, from PKR 52,500 to PKR 75,000.
According to government estimates, this measure will provide relief amounting to PKR 40 billion.
