Budget 2026-27: Salaried class set for ‘tax cuts’ under new proposals
Key takeaways
- They further said that a working proposal has been developed for providing relief on annual incomes up to Rs3.6 million.
- Under the proposed changes, the number of income tax slabs may be increased from six to eight in the next fiscal year.
- According to sources, a briefing on the proposals has already been presented to the Prime Minister.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize ISLAMABAD: Prime Minister Shehbaz Sharif has directed preparations for significant income tax relief for the salaried class in the upcoming federal budget 2026-27, ARY News reported on Wednesday, citing sources.
Sources told ARY News that proposals under consideration include tax relief for individuals earning monthly salaries of Rs100,000, Rs200,000, and Rs300,000, with an initial framework prepared to reduce income tax rates across these brackets.
They further said that a working proposal has been developed for providing relief on annual incomes up to Rs3.6 million. The plan also includes reducing tax rates for mid-income earners and restructuring tax slabs.