{"id":76434,"date":"2025-06-03T10:32:03","date_gmt":"2025-06-03T05:32:03","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=76434"},"modified":"2025-06-03T13:20:04","modified_gmt":"2025-06-03T08:20:04","slug":"imf-agrees-to-income-tax-relief-for-salaried-class-in-upcoming-budget-2025-26","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/business\/imf-agrees-to-income-tax-relief-for-salaried-class-in-upcoming-budget-2025-26\/","title":{"rendered":"IMF agrees to income tax relief for salaried class in upcoming budget 2025-26"},"content":{"rendered":"

ISLAMABAD: In a\u00a0<\/span>significant<\/span>\u00a0<\/span>breakthrough<\/span>\u00a0<\/span>in<\/span>\u00a0<\/span>the\u00a0<\/span>ongoing\u00a0<\/span>Pakistan<\/span>–International Monetary Fund<\/a> (IMF)<\/span>\u00a0<\/span>budget<\/span>\u00a0<\/span>talks<\/span>, the Fund has\u00a0<\/span>conceded<\/span>\u00a0<\/span>income tax relief to the salaried class,<\/span> according to <\/span>sources.
\n<\/span>
\n<\/span>According to the details, the IMF is now <\/span>ready<\/span>\u00a0to\u00a0<\/span>lower<\/span>\u00a0income tax rates<\/a>\u00a0<\/span>on<\/span>\u00a0all\u00a0<\/span>slabs of\u00a0<\/span>salary<\/span>,<\/span>\u00a0<\/span>according to official sources<\/span>.<\/p>\n

Sources\u00a0<\/span>also<\/span>\u00a0<\/span>confirmed\u00a0<\/span>that the relief will be\u00a0<\/span>made<\/span>\u00a0<\/span>available<\/span>\u00a0<\/span>in<\/span>\u00a0<\/span>the<\/span>\u00a0<\/span>form of\u00a0<\/span>Section 129\u00a0<\/span>amendments\u00a0<\/span>of the Income Tax Ordinance,\u00a0<\/span>the<\/span>\u00a0<\/span>law<\/span>\u00a0<\/span>that regulates\u00a0<\/span>exemptions and concessions.
\n<\/span>
\n<\/span>One of the\u00a0<\/span>key<\/span>\u00a0<\/span>reforms<\/span>\u00a0<\/span>up<\/span>\u00a0<\/span>for\u00a0<\/span>discussion\u00a0<\/span>involves<\/span>\u00a0<\/span>the\u00a0<\/span>increase<\/span>\u00a0<\/span>in\u00a0<\/span>tax-free income\u00a0<\/span>annually<\/span>\u00a0from the\u00a0<\/span>prevailing<\/span>\u00a0Rs600,000 to Rs1 million.<\/p>\n

<\/span>That<\/span>\u00a0would\u00a0<\/span>translate<\/span>\u00a0<\/span>to\u00a0<\/span>monthly\u00a0<\/span>wages<\/span>\u00a0up to Rs83,000\u00a0<\/span>being<\/span>\u00a0<\/span>taxed<\/span>\u00a0<\/span>away<\/span>\u00a0\u2014 a\u00a0<\/span>significant<\/span>\u00a0<\/span>jump<\/span>\u00a0from the\u00a0<\/span>existing<\/span>\u00a0Rs50,000 exemption\u00a0<\/span>threshold<\/span>.<\/p>\n

Under the\u00a0<\/span>new<\/span>\u00a0<\/span>proposals<\/span>,\u00a0<\/span>tax\u00a0<\/span>on\u00a0<\/span>an<\/span>\u00a0<\/span>income<\/span>\u00a0<\/span>of Rs100,000\u00a0<\/span>per<\/span>\u00a0<\/span>month<\/span>\u00a0<\/span>can<\/span>\u00a0<\/span>be<\/span>\u00a0<\/span>slashed<\/span>\u00a0to 2.5<\/span>% from the current 5<\/span>%.\u00a0<\/span>Likewise<\/span>, for\u00a0<\/span>an<\/span>\u00a0<\/span>income<\/span>\u00a0of Rs183,000,\u00a0<\/span>tax\u00a0<\/span>can<\/span>\u00a0<\/span>be reduced\u00a0<\/span>to 12.5<\/span>% from the current 15<\/span>%.<\/p>\n

Employees\u00a0<\/span>who<\/span>\u00a0<\/span>earn\u00a0<\/span>Rs267,000\u00a0<\/span>every<\/span>\u00a0month\u00a0<\/span>might<\/span>\u00a0<\/span>have<\/span>\u00a0their tax rate\u00a0<\/span>reduced<\/span>\u00a0from 25% to 22.5%.<\/span>In addition<\/span>, for monthly\u00a0<\/span>pay<\/span>\u00a0<\/span>of\u00a0<\/span>up to Rs333,000, the\u00a0<\/span>suggested<\/span>\u00a0rate\u00a0<\/span>might<\/span>\u00a0be\u00a0<\/span>cut<\/span>\u00a0from 30% to 27.5%,\u00a0<\/span>and<\/span>\u00a0those\u00a0<\/span>who<\/span>\u00a0<\/span>make<\/span>\u00a0<\/span>more than\u00a0<\/span>that\u00a0<\/span>might<\/span>\u00a0<\/span>be<\/span>\u00a0<\/span>subjected<\/span>\u00a0<\/span>to\u00a0<\/span>a\u00a0<\/span>lesser<\/span>\u00a0<\/span>top<\/span>\u00a0rate of 32.5%, down from\u00a0<\/span>35%.<\/p>\n

In another\u00a0<\/span>important<\/span>\u00a0<\/span>breakthrough<\/span>, the IMF has also\u00a0<\/span>accepted<\/span>\u00a0Pakistan<\/span>‘<\/span>s defence\u00a0<\/span>requirements<\/span>.\u00a0<\/span>Informed<\/span>\u00a0<\/span>sources\u00a0<\/span>of<\/span>\u00a0<\/span>the negotiations<\/span>\u00a0<\/span>stated that\u00a0<\/span>the\u00a0<\/span>government\u00a0<\/span>of<\/span>\u00a0<\/span>Pakistan insisted\u00a0<\/span>that the\u00a0<\/span>nation<\/span>\u00a0could not\u00a0<\/span>wait<\/span>\u00a0to\u00a0<\/span>meet<\/span>\u00a0<\/span>vital<\/span>\u00a0defence\u00a0<\/span>spending<\/span>.<\/p>\n

The IMF has\u00a0<\/span>been<\/span>\u00a0<\/span>said<\/span>\u00a0to\u00a0<\/span>agree<\/span>\u00a0<\/span>on<\/span>\u00a0<\/span>permitting<\/span>\u00a0<\/span>necessary<\/span>\u00a0<\/span>defence budget<\/span>\u00a0increases<\/span>,\u00a0<\/span>a\u00a0<\/span>significant<\/span>\u00a0concession in\u00a0<\/span>favor of\u00a0<\/span>Pakistan<\/span>\u00a0<\/span>as\u00a0<\/span>the<\/span>\u00a0<\/span>two\u00a0<\/span>sides\u00a0<\/span>complete<\/span>\u00a0fiscal\u00a0<\/span>proposals<\/span>\u00a0for the\u00a0<\/span>coming<\/span>\u00a0year.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

ISLAMABAD: In a\u00a0significant\u00a0breakthrough\u00a0in\u00a0the\u00a0ongoing\u00a0Pakistan–International Monetary Fund (IMF)\u00a0budget\u00a0talks, the Fund has\u00a0conceded\u00a0income tax relief to the salaried class, according to sources. According to the details, the IMF is now ready\u00a0to\u00a0lower\u00a0income tax rates\u00a0on\u00a0all\u00a0slabs of\u00a0salary,\u00a0according to official sources. Sources\u00a0also\u00a0confirmed\u00a0that the relief will be\u00a0made\u00a0available\u00a0in\u00a0the\u00a0form of\u00a0Section 129\u00a0amendments\u00a0of the Income Tax Ordinance,\u00a0the\u00a0law\u00a0that regulates\u00a0exemptions and concessions. One of the\u00a0key\u00a0reforms\u00a0up\u00a0for\u00a0discussion\u00a0involves\u00a0the\u00a0increase\u00a0in\u00a0tax-free income\u00a0annually\u00a0from the\u00a0prevailing\u00a0Rs600,000 to Rs1 million. […]<\/p>\n","protected":false},"author":9,"featured_media":19308,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,13446],"tags":[28642,160,29242,29241],"class_list":["post-76434","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-featured","tag-budget-2025-26","tag-imf","tag-income-tax-rates","tag-relief-to-salary-class"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/76434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=76434"}],"version-history":[{"count":1,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/76434\/revisions"}],"predecessor-version":[{"id":76435,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/76434\/revisions\/76435"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/19308"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=76434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=76434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=76434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}