Islamabad:
It is likely that the federal government improves the threshold of taxable income of RS600,000 in the next budget, provided it obtains the approval of the International Monetary Fund (IMF).
In addition, the government is also reflecting on the imposition of taxes on pensioners who attract substantial amounts.
According to the Federal Income Board (FBR), the relief proposed for financial year 2025–26 is limited to low -income slabs, without recommendations under consideration for people who earn high wages.
According to the sources, three proposals are currently being examined to extend the relief to the wage class in the next fiscal year.
One of those proposals suggests increasing the taxable income threshold from RS600,000 to RS800,000. However, only a final decision will be made after an additional consultation.
The Government also plans to simplify the income tax declaration form and review the sales tax rate.
In addition, a relief measure for salaried people who earn between RS600,000 and RS1.2 million is also under review.
The sources added that pensioners who receive substantial pensions are also under consideration, with a proposal to raise a 5 percent tax on annual pensions of RS800,000; 10 percent of RS800,000 to RS1.5 million; 12 percent of RS1.5 million to RS2 million; 15 percent of RS2 million to RS3 million; and 20 percent in pensions greater than RS3 million.
However, these are still preliminary recommendations, and the final decisions will be taken after a detailed evaluation and consultation process.
