Pakistan, June 11 -- The government has proposed to slash the 'Super Tax' rate by 0.5 per cent for corporations with an annual income of Rs200 million to Rs500 million in the federal budget for the fiscal year 2025-26. Similarly, a cut in the withholding tax rate on property purchases has also been proposed.

The government has also proposed a 5% hike in the tax rate on interest income, which will raise the rate from the existing 15% to 20%. High-income pensioners will also be brought under the tax net. Pensioners under the age of 70 whose annual pension is more than Rs10 million will be charged 5% tax. However, those receiving low and middle-range pensions will be exempted from this tax.

Finance Minister Muhammad Aurangzeb, in his budge...