Government reviews Income Tax Slab Revisions for Salaried Class earning Rs100,000 to Rs300,000

ISLAMABAD – Pakistan is moving policy shift that could bring major financial relief to salaried individuals in the upcoming Budget 2026–27, as authorities consider restructuring income tax slabs for middle-income earners. The proposed package, prepared on special directive of Prime Minister Shehbaz Sharif, targets employees earning between Rs100,000 and Rs300,000 per month, a segment that has been under increasing strain due to inflation and rising living costs. Policy-level discussions suggest that the government is actively reviewing revisions in tax slabs aimed at reducing the income tax burden on salaried taxpayers. If implemented, the changes are expected to directly benefit hundreds of thousands of individuals, with estimates indicating that around 550,000 people earning between Rs200,000 and Rs300,000 monthly could see an impact from the revised structure. The high ups already been briefed on the proposal, which remains under consideration. Authorities are currently evaluating multiple relief scenarios in consultation with the International Monetary Fund (IMF), including possible income tax reductions of 3%, 5%, and 10%. However, final approval is expected to depend on IMF agreement as part of broader fiscal discipline and reform requirements. The development comes as Pakistan prepares to present a Rs17.1 trillion federal budget for 2026–27, with parliamentary proceedings beginning on June 10 and the budget presentation scheduled for June 12. The budget is being formulated in the backdrop of serious economic challenges, including high debt servicing obligations, inflationary pressure, and IMF-linked fiscal constraints. On revenue side, Federal Board of Revenue (FBR) is expected to be assigned a tax collection target of approximately Rs15.26 trillion. The government’s strategy reportedly focuses on expanding the tax base, improving enforcement, and increasing overall compliance. Economic projections for the upcoming fiscal year suggest GDP growth of around 4%,