ISLAMABAD – Sigh of relief for those earning up to Rs1lac in Pakistan as Prime Minister Shehbaz Sharif directed the government to provide significant tax relief.
PM Shehbaz Sharif gave tasks to his team to provide relief for salaried individuals, particularly those earning up to Rs100,000 per month. This relief is set to be implemented under the Public Sector Development Programme (PSDP).
Tax Relief for Salaried Class
Sources claimed that government is currently considering two options, first is complete tax relief or a reduction in the tax rate of 2.5 percent, second option is to slight cut in 2.5pc tax.
This initiative was expected to give shock of overRs 40 billion to the national exchequer, but the government was forced to mull these changes due to rise in heat.
The move comes as the government devises a new strategy amid ongoing protests over high taxes and inflated utility bills.
Taxes Slabs in Pakistan
| Salary | Tax Rate | Old Tax | Updated Tax |
| Up to Rs 50,000 | No Tax | – | – |
| Rs 50,001 to Rs 100,000 | 5% | Rs 1,250 | Rs 2,500 |
| Rs 100,001 to Rs 183,344 | 15% | Rs 11,667 | Rs 15,000 |
| Rs 183,345 to Rs 267,667 | 25% | – | – |
| Rs 267,668 to Rs 341,667 | 30% | Rs 47,468 | Rs 53,333 |
