Pakistan, May 6 -- Pakistan is considering key changes in its tax policy for the upcoming budget of fiscal year 2025-26. The Federal Board of Revenue (FBR) plans to increase the annual tax exemption limit for salaried individuals from Rs600,000 to possibly Rs1,000,000 or Rs1,200,000. These proposals come ahead of the International Monetary Fund (IMF) mission's visit on May 16 to review Pakistan's budget plans and economic targets.

At the same time, the government is also looking at bringing pensioners into the tax net. One proposal suggests taxing those who receive more than Rs100,000 monthly pension. The potential tax rates could range between 2% and 5%. However, officials admit that this idea might not pass all approval stages due to e...