The government has announced significant relief for the salaried class tax relief Pakistan segment as part of the federal budget 2026-27, offering reduced income tax rates and removal of surcharge across four income slabs.
Finance Minister Muhammad Aurangzeb, while presenting the budget in the National Assembly, said the government fully understands the financial pressures faced by both public and private sector employees.
He stated that, on the direction of Prime Minister Shehbaz Sharif, the government has decided to provide targeted relief to salaried individuals earning between Rs2.2 million and Rs7 million annually.
Under the revised proposals, individuals earning between Rs2.2 million and Rs3.2 million per year will see their tax rate reduced from 23 percent to 20 percent. This marks a notable easing of the tax burden for middle-income earners.
For those earning between Rs3.2 million and Rs4.1 million annually, the tax rate has been proposed to decrease from 30 percent to 25 percent under the salaried class tax relief Pakistan package.
Similarly, taxpayers in the Rs4.1 million to Rs5.6 million income bracket will benefit from a reduction in tax rates from 35 percent to 29 percent, according to the budget announcement.
The government has also proposed lowering the tax rate for individuals earning between Rs5.6 million and Rs7 million annually from 35 percent to 32 percent, further expanding relief measures.
Officials say the reforms aim to ease financial pressure on salaried workers while maintaining fiscal balance in the broader salaried class tax relief Pakistan strategy outlined in the budget.
