Islamabad: The proposed details regarding what relief the salaried class will get in the federal budget for the next fiscal year have come to light.
The federal government is likely to increase the taxable income limit from Rs 600,000 per year to provide relief to salaried employees in the federal budget for the next fiscal year 2025-26, while tax slabs are also expected to be changed.
The approval of the proposals to provide relief to the salaried class is subject to the IMF. On the other hand, a tax proposal of 5 percent to 20 percent is also being reviewed on pensioners receiving large pensions.
According to the FBR, only the lower slabs will be changed in the upcoming budget. There is currently no relief proposal for the high-salaried class in the budget.
Officials say that three proposals are under consideration to provide relief to the salaried class in the next fiscal year’s budget, in which the annual income rate is likely to be increased for those earning more than Rs 50,000 per month in the first slab and the taxable income limit is proposed to be increased from Rs 600,000 to Rs 800,000 per year. However, the final decision will be taken after consultation.
Similarly, the income tax return form will be made simple and easy and tax slabs will be changed.
Relief is also likely to be given in the slab of annual income between Rs 600,000 and Rs 120,000 in the budget.
Sources say that 5 percent tax is proposed on pension income up to Rs 800,000 per year, 10 percent on annual income between Rs 800,000 and Rs 150,000, 12 percent on annual income between Rs 150,000 and Rs 200,000, 15 percent on annual income between Rs 200,000 and Rs 300,000 and 20 percent on income above Rs 300,000 per year.
Sources further say that these are preliminary proposals, but the proposals will be included after detailed review and consultation.
