ISLAMABAD: Finance Minister Muhammad Aurangzeb Wednesday said the government will review the tax rates on the highest salary slab or top income earners in the next federal budget exercise.
Finance Minister informed the Senate Standing Committee on Finance that tax rates on the highest income earners need to be reviewed. The tax on monthly Rs 100,000 reduced from 5 percent to one percent, but nobody is talking about this major relief given to the masses during last budget.
The government has given substantial tax relief measure in the federal budget (2025-26) for salaried class taxpayers, and reduced tax rates across all income slabs for salaried individuals, aiming to provide much-needed financial respite amid economic challenges.
The tax rates for salaried individuals has been reduced to provide relief to lower and middle tiers income bracket. However, no relief was provided to taxpayers falling under the category of highest income tax slab.
READ MORE: Budget 2025-26: Pakistan govt offers tax relief to salaried class, but representatives unhappy
The last Finance Act introduced a revised tax structure for salaried individuals, significantly lowering tax rates and amounts across various income brackets.
The finance minister responded that the government was willing to brief the committee on the overall economic situation without waiting for the upcoming budget. He emphasized that technology-led tax reforms had yielded positive results and assured members that no injustice was being done.
“Tax must be collected, but not in a way that harms livelihoods,” Senator Abdul Qadir remarked, urging a balanced approach.
Senator Sherry Rehman further cautioned that repeatedly taxing the same segments of society was not a sustainable revenue model. She also stressed that while macroeconomic stability was improving, ground realities such as unemployment in both public and private sectors needed urgent attention. In response, the finance minister said institutions being shut down were being closed with complete compensation packages, citing past examples such as bank privatization, which had also resulted in job losses.
Copyright Business Recorder, 2026
Comments
Comments are closed for this article.