ISLAMABAD: Tax relief for Pakistan’s salaried class in the upcoming fiscal year 2025-26 budget is expected to be conditional on approval from the International Monetary Fund (IMF), as government discussions continue on possible adjustments.
Sources indicate that preparations for the federal budget are in full swing, with high-level talks exploring ways to provide relief, particularly to salaried individuals and the real estate sector. One major proposal under review is the elimination of the 3% Federal Excise Duty (FED) on property sales, which could ease financial pressure on real estate transactions and encourage market activity.
For salaried earners, the government is considering revisions to the income tax structure. A key suggestion includes raising the annual tax exemption threshold above the current Rs600,000 mark. This would offer some financial relief to low- and middle-income workers, though any such move is reportedly subject to IMF consent.
Officials from the Federal Board of Revenue (FBR) noted that only the lower income tax slabs are likely to be revised in the upcoming budget. There are currently no plans to extend similar benefits to higher-income brackets.
These proposals are set to be reviewed with Prime Minister Shehbaz Sharif before the budget is finalized. The government aims to provide some cushion to citizens while remaining aligned with its financial commitments under the IMF agreement.
The FY2025-26 budget is expected to be announced in June, and all eyes are on how the government balances economic relief with fiscal discipline.
