ISLAMABAD (Web Desk) – The federal government has proposed reductions in income tax rates for salaried employees across four income brackets in the 2026-27 budget, aiming to lessen the financial strain on middle- and upper-income earners.
Presenting the budget in the National Assembly, Finance Minister Muhammad Aurangzeb said the government, led by Prime Minister Shehbaz Sharif, recognised the economic challenges faced by salaried workers in both the public and private sectors.
He said the prime minister had directed the government to provide tax relief to the salaried class through revised tax rates.
Under the proposal, individuals earning between Rs2.2 million and Rs3.2 million annually would see their tax rate reduced from 23% to 20%.
Those with annual incomes ranging from Rs3.2 million to Rs4.1 million would benefit from a cut in the tax rate from 30% to 25%.
Similarly, taxpayers earning between Rs4.1 million and Rs5.6 million a year would have their income tax reduced from 35% to 29%.
For salaried employees with annual incomes between Rs5.6 million and Rs7 million, the proposed tax rate would decrease from 35% to 32%.
The government said the measures are designed to provide financial relief to the salaried class amid continuing economic pressures.
