Government Considers Tax Relief for Salaried Class in Upcoming Budget

Islamabad: The government is actively considering providing relief to the salaried class in the upcoming fiscal year’s budget. According to sources, a proposal has been put forward to reduce income tax slabs by up to 2.5%, alongside a potential increase in salaries for government employees.
The proposed measures suggest capping the income tax at 2.5% for those earning up to PKR 100,000 per month. The aim is to ease the financial burden on the middle class, which has been heavily affected by inflation.
Additional proposals include launching a new loan scheme for small farmers, offering targeted incentives to boost the manufacturing sector, and reducing the withholding tax on raw materials for the construction industry.
Sources say virtual negotiations between the government’s economic team and the International Monetary Fund (IMF) are ongoing. The IMF has so far responded positively to the proposed measures but has emphasized the need for a viable alternative revenue plan to offset any relief provided.
Further discussions are expected in the coming days focusing on budget targets, fiscal deficit, and revenue projections.