Finance Minister Announces Further Tax Relief for Salaried Class, Exempts Pensioners Above 75 from All Taxes

Islamabad: Federal Finance Minister Muhammad Aurangzeb has announced further tax relief for the salaried class and declared that pensioners aged over 75 will be completely exempt from all taxes. Speaking during a session of the National Assembly, the minister stated that the tax burden on salaried individuals has been reduced, and additional relief is being provided. The tax rate on annual income between Rs 600,000 and Rs 1.2 million has been further reduced to just 1%.
Aurangzeb emphasized the government’s intention to broaden the tax base, noting that pensioners receiving over Rs 10 million annually will be taxed, except those over the age of 75 who will remain exempt. He also announced a major reduction in taxes on imported solar panels, decreasing the tax rate from 18% to 10%, in an effort to encourage clean energy adoption.
Regarding other economic measures, the finance minister shared that discussions on the EV (electric vehicle) policy are ongoing and that a comprehensive industrial policy will be unveiled soon. Government expenditure has been curtailed, and efforts are being made to improve the overall business climate.
To tackle tax evasion, a high-level three-member committee will investigate non-filers, who will be presented before a magistrate within 24 hours of arrest. No arrests without a warrant will be made in tax cases involving up to Rs 50 million.
Aurangzeb also highlighted initiatives to promote sustainable growth, boost exports, and support farmers through a new lending program that offers loans on easy terms.
He further stated that individuals purchasing residential property worth over Rs 50 million or commercial property above Rs 100 million, as well as vehicles valued above Rs 7 million, will be required to declare their source of income.
Winding up the budget debate, Aurangzeb announced that no withholding tax will apply to self-occupied residential properties held for 15 years or more. He also clarified that no tax will be imposed on pension-related gratuity, reflecting the government’s review and amendment of several budget proposals.