Govt proposes income tax reduction for salary earners

(Web Desk): The federal government has proposed income tax relief for salaried individuals in the Budget 2025-26.

According to the budget document, for those earning an annual salary between Rs600,000 and Rs1.2 million, the tax rate is proposed to be reduced from 5% to just 1%.

The budget document also suggests reducing the tax amount for salaried individuals with an annual income of Rs1.2 million from Rs30,000 to Rs6,000.

For those earning up to Rs2.2 million annually, the minimum tax rate is proposed to be reduced to 11% instead of 15%.

Similarly, a reduction in the tax rate has also been proposed for higher-income earners. For those receiving an annual salary between Rs2.2 million and Rs3.2 million, the tax rate is proposed to be reduced from 25% to 23%.