Govt mulls major relief for salaried class in budget

The federal government is considering providing major tax relief to salaried persons earning more than Rs 1,83,000 per month, reported 24NewsHD TV channel on Friday.

Sources said under one proposal, the tax rate for those earning up to Rs267,000 per month could be reduced by five percentage points, bringing the rate down from 25 percent to 20 percent. The government is also examining revised tax rates for higher income brackets.

A tax rate of 29 percent has been proposed for monthly incomes of up to Rs467,000, while individuals earning up to Rs583,000 per month may face a tax rate of 32 percent.

For top earners, the maximum income tax rate of 35 percent is likely to remain unchanged. This rate would continue to apply to individuals with annual incomes exceeding Rs7 million.

In another possible relief measure, the government is considering abolishing the surcharge currently imposed on taxpayers earning more than Rs10 million annually. 

The proposal is aimed at simplifying the tax regime and addressing concerns raised by high-income taxpayers and business groups.

The final decision on tax relief to the salaried class will be taken in the federal cabinet meeting, which will be held today.

Reporter: Waqas Azeem